Question: 4. The table below shows annual cash flows for a capital project. a) Calculate the payback period. If the maximum acceptable payback period is three
4. The table below shows annual cash flows for a capital project. a) Calculate the payback period. If the maximum acceptable payback period is three years, should the project be accepted or rejected? Why? b) Assume the cost of capital is 15\%. Calculate the NPV. Using the NPV criterion, should the project be accepted or rejected? Why? c) Assume the cost of capital is 15%. Calculate the IRR. Should the project be accepted or rejected? Why
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