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In: Finance

You are considering a project that will require an initial outlay of $200,000. This project has...

You are considering a project that will require an initial outlay of $200,000. This project has an expected life of five years and will generate after-tax cash flows to the company as a whole of $60,000 at the end of each year over its five-year life.      Thus, the free cash flows associated with this project look like this. Given a required rate of return of 10% percent, calculate the following:

  1. Discounted payback period
  2. b.     Net present value
  3. Profitability index
  4. IRR

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