Answer to Question #64280 in Other Other for hamza

Question #64280

Initial investment project requires an investment of $1,000,000. It has an expected life of 5 years with annual cash flows of $240,000 received at the end of each year.
Required:
a) Compute payback for the project
b) Compute the internal rate of return for the project
c) Compute the net present value of the project using a 12% discount rate. Ignore income taxes
d) Would you recommend this project be accepted? Why or why not?

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