What is the payback period for this project

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Imagine that your company is considering a project that would cost $100 million today, and provide an estimated $25 million of incremental, net cash flow each year for the next six years.

a. What is the Payback Period for this project?

b. What is the NPV of this project, if the discount rate is 8.6%? Should the firm accept this project?

c. What is the IRR of this project? Should the firm accept this project?

Reference no: EM132443361

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