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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

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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 0 $27,200 1 11,200 2 14,200 3 10,200 00 52 54 Print What is the NPV for 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.) NPV S 2306.40 At a required return of 11 percent should the firm accept this project? At a required return of 11 percent, should the firm accept this project? O No Yes What is the NPV for the project if the required return is 25 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 -3.644 00 At a required return of 25 percent should the firm accept this project? Yes NO

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