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8. A project that provides annual cash flows of $25,000 for nine years costs $125,000 today. a) Is this a good project if the required
8. A project that provides annual cash flows of $25,000 for nine years costs $125,000 today.
a) Is this a good project if the required return is 10 percent?
b) What if its 20 percent?
c) At what discount rate would you be indifferent between accepting the project and
rejecting it?
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