Sigma Solutions is considering a project with an initial outlay of CAD 120,000. The project's...
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Accounting
Sigma Solutions is considering a project with an initial outlay of CAD 120,000. The project's cash inflows are:
Year
Cash Flows
Initial Investment
(120,000)
1
35,000
2
45,000
3
50,000
4
55,000
Requirements: a. Determine the payback period for the project. b. Calculate the NPV if the cost of capital is 4%. c. Should Sigma Solutions accept the project based on the NPV criterion?
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