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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 |
1.) What is the NPV of the project if the required return is 11 percent? 2.) At a required return of 11 percent, should the firm accept this project?
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