Question 1 - CORPORATE FINANCE INC. has a possible capital budgeting project with a cost...
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Finance
Question 1 - CORPORATE FINANCE INC. has a possible capital budgeting project with a cost of capital of 10%, and the expected cash flows shown below. Year 0 1 2 3 4 5 Cash Flow -100 25 50 50 25 10 a Calculate the project's NPV. Should CORPORATE FINANCE INC. accept the project? Why? b. Calculate the project's IRR (approximate the IRR). Should CORPORATE FINANCE INC. accept the project according to the IRR rule? Why? c. Calculate the project's Profitability Index. Should CORPORATE FINANCE INC. accept the project according to the Profitability Index rule? d. Calculate the project's discounted payback period. What does payback tell you about the project's acceptability
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