YearCash Flow to Equity ($)0-4,000,00011,500,00021,500,00031,500,00041,500,000Requirements:Determine the IRR.Calculate the NPV with a 10% discount rate.Should the...

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Question

Accounting

Year

Cash Flow to Equity ($)

0

-4,000,000

1

1,500,000

2

1,500,000

3

1,500,000

4

1,500,000

Requirements:

  1. Determine the IRR.
  2. Calculate the NPV with a 10% discount rate.
  3. Should the project be accepted if the cost of equity is 10%?
  4. Compute the payback period.

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