Question: 1 Problem 4. 2 3 4 5 6 7 Nugget Communication Corp. is planning to investi $9.5 million in new technologies. The company expects

1 Problem 4. 2 3 4 5 6 7 Nugget Communication Corp.

1 Problem 4. 2 3 4 5 6 7 Nugget Communication Corp. is planning to investi $9.5 million in new technologies. The company expects significant benefits in the first three years after installation (as can be seen by the cash flows below), and a constant cash inflow for four more years after that. If the discount rate is 11.7%, would you recommend going ahead with the project? Pick at least 3 methods to analyse this project. B 9 Discount rate: 0 1 Project 1 2 Year B Cash flow $ 4 5 5 7 11.70% 0 (9,500,000) $ 1 2,500,000 $ 2 4,500,000 $ 3 3,500,000 $ 4 5 2,250,000 $ 1,250,000 $ 6 7 1,000,000 $ 750,000

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