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1.) A project that provides annual cash flows of $16,500 for nine years costs $71,000 today. What is the NPV for the project if the
1.) A project that provides annual cash flows of $16,500 for nine years costs $71,000 today.
What is the NPV for the project if the required return is 8 percent?
At a required return of 8 percent, should the firm accept this project?
What is the NPV for the project if the required return is 20 percent?
At a required return of 20 percent, should the firm accept this project?
At what discount rate would you be indifferent between accepting the project and rejecting it?
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