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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 Cash Flow
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: |
Year | Cash Flow |
---|---|
0 | $ 27,600 |
1 | 11,600 |
2 | 14,600 |
3 | 10,600 |
What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
At a required return of 10 percent, should the firm accept this project? |
multiple choice 1
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What is the NPV for the project if the required return is 26 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.) |
At a required return of 26 percent, should the firm accept this project? |
multiple choice 2
|
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