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A company is considering an investment project which involves the purchase of machinery. The project...

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Finance

A company is considering an investment project which involves the purchase of machinery. The project has a four year life at the end of which the machinery will be sold for 40,000. The project will result in the following cash flows: Initial investment 120,000 Year 1 cash inflow 35,000 Year 2 cash inflow 40,000 Year 3 cash inflow 55,000 Year 4 cash inflow 30,000 The companys policy is to depreciate machinery on a straight line basis over its estimated life. The company has a cost of capital of 10%.

The payback period for the proposed investment, to the nearest month, is?

The net present value of the proposed investment is?

The internal rate of return of the proposed investment is?

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