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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 | $ | 34,000 | |
1 | 15,000 | ||
2 | 17,000 | ||
3 | 13,000 | ||
What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
At a required return of 11 percent, should the firm accept this project? |
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No
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Yes
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