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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 $ 28,000
1 12,000
2 15,000
3 11,000

What is the NPV of the project if the required return is 11 percent?

At a required return of 11 percent, should the firm accept this project?

What is the NPV of the project if the required return is 25 percent?

At a required return of 25 percent, should the firm accept this project?

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