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Suppose your firm is considering investing in a project with thecash flows shown below, that the required rate of return onprojects of this risk class is 8 percent, and that the maximumallowable payback and discounted payback statistics for the projectare 3.5 and 4.5 years, respectively.Time:0 1 2 3 4 5 6Cash flow:–$5,000 $1,200 $2,400 $1,600 $1,600 $1,400 $1,200Use the NPV decision rule to evaluate this project. (find $ notyears)Can you give step by step instructions?
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