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Suppose you have the opportunity to invest in a project which is expected to generate...

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Finance

Suppose you have the opportunity to invest in a project which is expected to generate $6800 and year 1, $7200 in year 2, $ 7500 in year 3. The appropriate risk adjusted discount rate for the project is 10.5%. The projects initial investment is $15,000 then:

1.The profitability index of this project is 1.39

2.The IRR of this project 20.03%

3.the discounted payback period of this project is 2.13 years

a. 1&2 correct

b. 2 correct

c.1&3 correct

d. 1 correct

e.2&3 correct

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