Question: Eta Technologies is evaluating a new project with an initial investment of $300,000. The project is expected to generate annual cash flows of $80,000 for

Eta Technologies is evaluating a new project with an initial investment of $300,000. The project is expected to generate annual cash flows of $80,000 for 5 years. The company’s cost of capital is 12%.

Requirement: Calculate the payback period, NPV, and IRR for the project. Should Eta Technologies proceed with the project? Provide a detailed explanation based on your calculations.

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