Example 1 Centell Pty, a small business, maintains a debt-equity ratio of 2:1. The firm...

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Example 1 Centell Pty, a small business, maintains a debt-equity ratio of 2:1. The firm is considering a project with an initial cost estimation of R600,000. The interest rate on loans is 8% while the opportunity on the firm's own funds is 10%. The expected annual free cash flows from the project are as follows: Indicate whether this project is viable or not using the Payback Period, Discounted Payback Period, NPV, Profitability Index, and Modified IRR methods assuming the cash flows are reinvested at the cost of capital rate

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