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Internal rate of return-shane industries

Question 1. Shane industries is considering a project which has the following cash flows:

Year Cash flow

0 ($5,000)

1 ?

2 $2,000

3 $3,000

4 $3,000

5

The project has a payback period of 2.5 years. The firm's discount rate is 10%. What are the project's Net Present Value (NPV) and Internal Rate of Return (IRR)?

Now Priced at $20 (50% Discount)

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