You are analyzing a project and have prepared the following
Year Cash flows
1 $ 50,000
2 $ 75,000
3 $ 95,000
4 $ 15,000
Required payback period 3 years
Required rate of return 5%
You are required to:
a) Determine the project’s Profitability Index, Internal Rate of Return, NPV and Discounted Payback
b) Decide whether to accept the project based on the above investment decision criteria?
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