YearCash Flow ($)0-6,000,00012,000,00022,500,00033,000,00042,500,000The company's cost of capital is 9%.Plot the NPV profile.What is the IRR?Should...

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Question

Accounting

Year

Cash Flow ($)

0

-6,000,000

1

2,000,000

2

2,500,000

3

3,000,000

4

2,500,000

The company's cost of capital is 9%.

  1. Plot the NPV profile.
  2. What is the IRR?
  3. Should the project be accepted if the cost of capital is 9%?
  4. Calculate the Payback Period.
  5. Compute the Average Accounting Return (AAR).

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