Question

The Camel Company is considering the following project. Assume discount rate of 12%. ​Year​Cash Flow ​0​-100,000...

The Camel Company is considering the following project. Assume discount rate of 12%.

​Year​Cash Flow

​0​-100,000

​1​+25,000​​

​2​+50,000

​3​+55,000

​4​+75,000

(a) Compute NPV. Should the company accept or reject this project. Justify.

(b) Compute IRR. Should the company accept or reject this project. Justify.

(c) Compute PI. Should the company accept or reject this project. Justify.

(d) Compute payback period. Should the company accept or reject this project. Justify.

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