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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: [From Instructor: Please

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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: [From Instructor: Please find the alternative calculation methods to the Hint video for this question posted to Weekly Exercise 07 on Canvas. Due to the complexity of the format presented in the solution, I am not able to put everything within the hint window. Your understanding is highly appreciated.] 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? No Yes 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 intermedlate 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? Yes No

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