Question: There is a project. The initial outlay will be $10,800,000, and the project will generate cash flows of $1,250,000 per year for 20 years. The

There is a project. The initial outlay will be $10,800,000, and the project will generate cash flows of $1,250,000 per year for 20 years. The appropriate discount rate is 9%.

  1. Calculate the NPV
  2. Calculate the PI
  3. Calculate the IRR
  4. Is it a good project? Why?

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