Question
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $27,000 1 21,000 2 14,000 3 6,000 a.
A firm evaluates all of its projects by using the NPV decision rule.
| Year | Cash Flow | ||
| 0 | $27,000 | ||
| 1 | 21,000 | ||
| 2 | 14,000 | ||
| 3 | 6,000 | ||
a. At a required return of 18 percent, what is the NPV for this project?
b. At a required return of 32 percent, what is the NPV for this project?
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The Oxford Handbook Of Private Equity
Authors: Douglas Cumming
1st Edition
0195391586, 978-0195391589
