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NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would an initial cash outlay of $5,000,000 and would generate annual free cash inflows of $1,200,000 per year for 8 years. Calculate the project’s NPV given: a. A required rate of return of 8 percent b. A required rate of return of 10 percent c. A required rate of return of 14 percent d. A required rate of return of 17 percent a. If the required rate of return is 8 percent, the project’s NPV is $ (Round to the nearest dollar.) (Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $90,000 and expected free cash flows of $20,000 at the end of each year for 5 years. The required rate of return for this project is 8 percent. a. What is the project’s payback period? b. What is the project’s NPV? c. What is the project’s Pl? d. What is the project’s IRR? ….. a. The project’s payback period is years. (Round to two decimal places.) (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $12,000 resulting in a single free cash flow of $17,258 after 7 years b. An initial outlay of $12,000 resulting in a single free cash flow of $53,391 after 12 years c. An initial outlay of $12,000 resulting in a single free cash flow of $114,163 after 18 years d. An initial outlay of $12,000 resulting in a single free cash flow of $14,158 after 4 years a. What is the IRR of a project with an initial outlay of $12,000 resulting in a single free cash flow of $17,258 after 7 years? 1% (Round to two decimal places.)

 
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