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Unformatted text preview: Year Cash flow Cumulative cash flows 0 18000001800000 Discount rate 12% 1 350,0001,450,000 2 500,000950,000 3 600,000350,000 4 800,000 450,000 5 500,000 950,000 a. NPV $130,292.98 c. Profitability Index = (Initai Investment + NPV)/Initial Invesment Profitability Index = 1.072385 d. IRR 15% e. Payback period 3.4375 f. Discounted payback period 3.4375 g. Terminal value = Cash flow at end of year 5/ (1 + i)^5 Terminal value = 283713.4 MIRR 11%...
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 Spring '11
 xyz
 Net Present Value, PAYBACK PERIOD, terminal value

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