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Calculate npv for option

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You have identified two investment options and the associated net cash flows. Assuming a 7.00 percent discount rate, calculate the requested value. Record all values in accordance with the reporting protocols used in class.

Year. Option #1. option #2

0 ($125,000) ($125,000)
1 17500 31000
2 22500 31000
3 32500 31000
4 37500 31000
5 42500 31000

SRR for option #2

Calculate NPV for option #2

calculate the profitability index for option #2

Calculate the discounted payback period for option #2

Reference no: EM132679129

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