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An investment project has the following cash flows: initial cost = $1,000,000; cash inflows =...

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Finance

An investment project has the following cash flows: initial cost = $1,000,000; cash inflows = $200,000 per year for eight years. If the required rate of return is 12%: i) Compute the projects NPV. What decision should be made using NPV? ii) Compute the projects IRR. How would the IRR decision rule be used for this project, and what decision would be reached?

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