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9. You have the following cash flows: Investment G: Year: 0 1 2 Cash flow: -S14,000 S6000 S6000 loshi 3 -S3000 4 5 S6000 $10,000

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9. You have the following cash flows: Investment G: Year: 0 1 2 Cash flow: -S14,000 S6000 S6000 loshi 3 -S3000 4 5 S6000 $10,000 NPusolve a) Use the NPV and Payback period rules to decide if you would invest in this project. Your cost of capital is 15% and you would invest in projects that pay you back in 3.5 years or less Solution b) Can you use the IRR decision rule to evaluate this project? Solution - No you will have multiple IRRs

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