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The following are cash flows:
Year 0: -$200,000
Year 1: $85,000
Year 2: $150,000
Year 3: $28,000
Year 4: $48,000
Determine the following for the cash flows above assuming 8% interest compounded annually:
a) Present worth
b) Future worth
c) Equivalent annual worth
d) Also – for this cash flow diagram, compute the following:
i) IRR
ii) B/C ratio
iii) Non-discounted payback period
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