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6. Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC (weighted average cost of capital) data. What is the

6. Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC (weighted average cost of capital) data. What is the project's NPV in $? (Enter your answers as a number rounded to 2 decimal places)

WACC = 10%

Year

Cash Flow ($)

0

-1000

1

200

2

300

3

500

4

600

13 Which one of the following indicates that a project should be rejected?

1)

Payback period that is shorter than the requirement period

2)

Positive net present value

3)

Profitability index is greater than 1.0

4)

Internal rate of return that exceeds the required return

5)

Negative net present value

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