Question: Cash Flow Intuition A project has an initial cost of 1, has required return of R, and pays C annually for N years. a. Find

Cash Flow Intuition A project has an initial cost of 1, has required return of R, and pays C annually for N years.

a. Find C in terms of l and N such that the project has a payback period just equal to its life.

b. Find C in terms of I, N, and R such that this is a profitable project according to the NPV decision rule.

c. Find C in terms of I, N, and R such that the project has a benefit-cost ratio of 2.

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