2. A project costs 3,000 and it has cash flows of 2,000, 2,000, 1,500 and Assume that...

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2. A project costs 3,000 and it has cash flows of 2,000, 2,000, 1,500 and Assume that the associated

a, factors are estimated to be:

a, 1.00,

a, 1,000 in years 1 through 4. 0.90,

a, 0.70,

a, 0.50 and

a, 0.30, and the risk-free discount rate is 10 per cent. Should the project be accepted?

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