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Information about the investment project is as follows. discount rate (r)...

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Finance

Information about the investment project is as follows.
discount rate

(r) = %30

Year

 
Net cash flows

(TL)

0

-10.000.000

1

8.000.000

2

12.000.000

3

- 11.000.000

4

7.000.000

 
a) Calculate the net present value of the investment. Please interpret with the reasons whether the investment project will be accepted or not according to your result.
b) Calculate the internal rate of return of the project using the adjusted internal rate of return method. Interpret the result you found. Explain why the adjusted internal rate of return method was used for the solution. Show the equation you have created.
c) Calculate the profitability index of the investment and interpret the result you find.

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