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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

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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 -$ 27,900 1 2 3 11,900 14,900 10,900 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 Answer is complete but not entirely correct. 4,551.12 At a required return of 10 percent, should the firm accept this project? Yes 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?

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NPV can be calculated by using the formula C0 Cn 1 rn Where C... blur-text-image

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