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  1. business
  2. accounting
  3. initial outlay: $2,500,000year 1: $1,000,000year 2

Initial Outlay: $2,500,000Year 1: $1,000,000Year 2: $1,200,000Year 3: $1,500,000Year 4: -$500,000Requirements:Calculate the IRR.Determine the NPV...

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Question

Accounting

  • Initial Outlay: $2,500,000
  • Year 1: $1,000,000
  • Year 2: $1,200,000
  • Year 3: $1,500,000
  • Year 4: -$500,000

Requirements:

  1. Calculate the IRR.
  2. Determine the NPV using a discount rate of 11%.
  3. Evaluate the project’s profitability index.
  4. Assess the project’s viability considering a required rate of return of 11%.

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