Zeta Corporation is analyzing a project that requires an initial investment of USD 200,000 and...

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Accounting

Zeta Corporation is analyzing a project that requires an initial investment of USD 200,000 and is expected to generate the following cash flows:

Year

Cash Flows

Initial Investment

(200,000)

1

70,000

2

60,000

3

80,000

4

90,000

Requirements: a. Determine the payback period. b. Calculate the NPV if the cost of capital is 8%. c. Assess the profitability of the project using the IRR.

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