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Problem based on project cash flows

Problem: Given the following project cash flows, identify the correct statement(s). The firm's cost of capital is 15%.

Cash Flow

0 -50

1 150

2 75

3 -10

I. This project will have two IRRs.

II. The NPV of the project is $180.57.

III. The profitability index of the project is 2.61.

IV. The payback period of the project is 1.33.

a. I only

b. II only

c. II and III only

d. IV only

e. I and IV only

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## Q : Discount rate to compute the npv

A firm uses a single discount rate to compute the NPV of all its potential capital budgeting projects