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Compute the net present value

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A capital project has an initial investment of $225,000 and cash flows in years 1-6 of $80,000, $65,000, $50,000, $50,000, $35,000, and $60,000, respectively. Given a 10 percent cost of capital,

(a) Compute the net present value.

(b) Compute the internal rate of return

(c) Should the project be accepted? Why or why not?

Reference no: EM131466565

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