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a. $7,026 $7,377 $6,745 $7,166 $6,885 b. $566.61 $518.04 $550.42 $528.83 $539.62 (These are the drop down options.) A firm evaluates all of its projects

a. $7,026 $7,377 $6,745 $7,166 $6,885

b. $566.61 $518.04 $550.42 $528.83 $539.62 (These are the drop down options.)

A firm evaluates all of its projects by using the NPV decision rule.

Year Cash Flow 0 $27,000 1 22,000 2 14,000 3 8,000

a. At a required return of 17 percent, what is the NPV for this project?

b. At a required return of 34 percent, what is the NPV for this project?

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