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YZA Co. is evaluating a project that requires an initial investment of $200,000. The project is expected to produce the following cash flows: Year Cash
YZA Co. is evaluating a project that requires an initial investment of $200,000. The project is expected to produce the following cash flows:
Year | Cash Flow |
1 | $50,000 |
2 | $55,000 |
3 | $60,000 |
4 | $65,000 |
5 | $70,000 |
Requirements:
- Calculate the payback period.
- Calculate the NPV with a discount rate of 10%.
- Calculate the IRR.
- Determine the profitability index.
- Evaluate if YZA Co. should proceed with the project.
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