Question: Clancy Inc. is considering a project with the following cash flows. a. Clancy has a policy of rejecting all projects that dont pay back within

Clancy Inc. is considering a project with the following cash flows.

a. Clancy has a policy of rejecting all projects that donâ€™t pay back within three years and analyzing those that do more carefully with time value based methods.
Does this project warrant further consideration?
b. Should Clancy accept the project based on its NPV if the companyâ€™s cost of capital is 8%?
c. What conclusion will the firm reach based onPI?

Co C2 C, $(7,800 $2,300 $3,500 $4,153

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