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. A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0
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A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 1 2 Cash Flow 27,100 11,100 14.100 10,100 What is the NPV for the project if the required return is 12 percent? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 12 percent, should the firm accept this project? O No Yes What is the NPV for the project if the required return is 24 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPVN At a required return of 24 percent, should the firm accept this project? YesStep by Step Solution
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