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Payback period for project-npv of project

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Reference no: EM132444652

Problem: Imagine that Company ABC is considering a project that would cost $100 million today, and provide an estimated $25 million of incremental, net cash flow each year for the next six years.

Required:

a. What is the Payback Period for this project?

b. What is the NPV of this project, if the discount rate is 8.6%? Should the firm accept this project?

c. What is the IRR of this project? Should the firm accept this project

Reference no: EM132444652

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