What is the net present value of the project

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Question - A company is considering a new inventory system that will cost $120,000. The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $70,000 in year 4. The firm's required rate of return is 9%.

What is the payback period of this project?

What is the net present value (NPV) of the project?

What is the internal rate of return (IRR) of this project?

What is the modified internal rate of return (MIRR) of this project?

What is the profitability index (PI) of this project?

Reference no: EM132913486

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