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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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