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A project will cost $1,000 today and will pay back $100 one yearfrom today (t=1), $200 two years from today (t=2), $500 three yearsfrom today (t=3) and $1,000 four years from today (t=4). If therequired rate of return is 7%, answer question Q1 to Q5.Q1: What is the present value of the future cashflow?a)1578.62b)1439.19c)1374.25d)1664.83Q2: What is the NPV of the projecta)439.19b)1439.19c)578.62d)1374.25Q3: What is the IRR of the project?a)21.75%b)15.39%c)16.84%d)19.77%Q4: What is the payback period of the project?a)3.5b)3.2c)3.8d)4Q5: How long is the Discounted Payback Perioda)3.28b)3.42c)4d)2.77
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