(1+2.5+2.5 marks) 3. A company is evaluating the following project: Project 12% 4 Required Return...
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(1+2.5+2.5 marks) 3. A company is evaluating the following project: Project 12% 4 Required Return Project Life (years) cash flows 0 1 2 3 4 -175,000 45,000 50,000 65,000 85,000 Show the necessary calculations: a. What is the payback period of the project? If the company management sets a cutoff period of 3years. Will this project be accepted? b. What is the NPV of the project? c. What is the IRR of the project? d. Will the proposed project be accepted or rejected
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