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37. Consider a project with the following cash flows: t Year t=0 ??? t= $7,500 =2 $12,500 t= 3 $15,000 = 4 $17,500 The Paybac
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Answer #1

Cost = initial cash flow at year 0 = 27500

Npv = net present value = present value of cash inflow-cost.
=37,555.33-27500
= 10,055.33

payback peniod= The time taken to earn sal Investment = 2.5 The amount Earned in 2-5 years = 7500 + 12 SUD + 15000 2 - 27500discount rate - 137. present value of cash inflow - 7500 + 12500 + (1013) (1-13)² = $37, 555.33 - 15000 (1-13) 3 0 + 7500 (1-

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