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A wine enthusiast is launching a winery with a $5 million initial investment and an additional $1 million in year 2. The vines will mature

A wine enthusiast is launching a winery with a $5 million initial investment and an additional $1 million in year 2. The vines will mature over the next five years. Starting at the end of year 6, the winery is projected to generate net cash inflows of $2 million, $4 million in year 7, $6 million in year 8, $8 million in year 9, and $10 million in year 10. Your task is to determine the NPV, IRR, and Payback (both non-discounted and discounted at a 15 percent discount rate). Can the company cover its cost of capital? Recommend the project?

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