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In: Finance

(Payback ​period, NPV,​ PI, and IRR calculations​) You are considering a project with an initial cash...

(Payback

​period, NPV,​ PI, and IRR

calculations​)

You are considering a project with an initial cash outlay of

​$90,000

and expected free cash flows of

​$28,000

at the end of each year for

5

years. The required rate of return for this project is

6

percent.

a. What is the​ project's payback​ period?

b. What is the​ project's

NPV​?

c. What is the​ project's

PI​?

d. What is the​ project's

IRR​?

Solutions

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