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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
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$ 28,800 1 12,800 2 3 15,800 11,800 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.) NPV $ 4,759.73 At a required return of 10 percent, should the firm accept this project? Yes O NO 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.) NPV At a required return of 26 percent, should the firm accept this project? Yes NO
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