A company is evaluating a project that requires an initial investment of $20,000 and is expected to produce cash inflows of $5,000 annually for 6 years The cost of capital for this project is 9 Calculate the Net Present Value (NPV) Determine the Internal Rate of Return (IRR) Compute the payback period Calculate the profitability index Based on these calculations, should the project be accepted

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Question: A company is evaluating a project that requires an initial investment of $20,000 and is expected to produce cash inflows of $5,000 annually for 6

A company is evaluating a project that requires an initial investment of $20,000 and is expected to produce cash inflows of $5,000 annually for 6 years. The cost of capital for this project is 9%.

Calculate the Net Present Value (NPV).
Determine the Internal Rate of Return (IRR).
Compute the payback period.
Calculate the profitability index.
Based on these calculations, should the project be accepted?

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