What will be the firm new market value

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A new project that is being considered requires an initial investment of $750,000. The ex- pected future cash flows are $500,000 per year for four years. Assume the appropriate discount rate is 15%. a. What is the NPV? b. Suppose that the firm that’s considering this project has a market value of $2.2 million. If the firm accepts this project, what will be the firm’s new market value? c. What is the IRR? d. What is the payback period? Include partial periods (e.g., x.xx years) in your response.

Reference no: EM131867815

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