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Siegmeyer Corp. is considering a new inventory system, Project A will cost $750,000.

1.    Siegmeyer Corp. is considering a new inventory system, Project A will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. Siegmeyer's required rate of return is 8%. What is the payback period of this project?  What is the internal rate of return of this project?

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I Payback period =2.50 years II... View the full answer

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Pay back period= 2.50... View the full answer

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