Question: You evaluate ALL of its projects by applying the Payback, Discounted Payback, NPV, and IRR rules. Assume the cost of capital is 10%. Assume cash

You evaluate ALL of its projects by applying the Payback, Discounted Payback, NPV, and IRR rules.

Assume the cost of capital is 10%.

Assume cash flows of:

TIME CASH FLOWS -------------------------------------------------------------- 0 -$100 1 +$75 2 +$50 3 +$25

What is the payback?

What is the Discounted Payback?

What is the NPV?

Is the IRR equal to 28.86%? a. Yes b. No

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