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a. Calculate the NPV of this investment opportunity. If the cost of capital is 10.7%, the NPV is $ (Round to the nearest dollar.) Should
a. Calculate the NPV of this investment opportunity. If the cost of capital is 10.7%, the NPV is $ (Round to the nearest dollar.) Should the company make this investment? (Select the best choice below.) Should the company make this investment? (Select the best choice below.) O A. Accept the investment because the NPV is equal to or less than zero (50). B. Reject the investment because the NPV is equal to or greater than zero (50). C. Reject the investment because the NPV is less than zero (50). D. Accept the investment because the NPV is equal to or greater than zero ($0). b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The IRR is %. (Round to two decimal places.) If the cost of capital is 10.7%, the maximum deviation is % (Round to two decimal places.) c. Calculate the NPV of this investment opportunity. Should the company make the investment? If the cost of capital is 13.5%, the NPV is $. (Round to the nearest dollar.) Should the company make the investment? (Select the best choice below.) O A. Reject the investment because the NPV is equal to or greater than zero (50). OB. Accept the investment because the NPV is equal to or less than zero (50). OC. Reject the investment because the NPV is less than zero (50). OD. Accept the investment because the NPV is equal to or greater than zero (50)
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