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Determine the profitability index and payback period

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Reference no: EM132572438

A project requires an initial investment of Br. 180,000. It generates the following net cash flows for six years:

Year 1 50,000

Year 2 70,000

Year 3 60,000

Year 4 100,000

Year 5 90,000

Year 6 80,000

The required rate of return is 10%.

Required:

Question a: Determine the following:

1. Payback period

2. NPV

3. Profitability index

4. IRR

Reference no: EM132572438

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