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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 Required:
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 | ||
Required: | |
(a) | At a required return of 26 percent, what is the NPV for this project? |
(Click to select)1,558.671,484.441,425.071,514.131,454.76 |
(b) | At a required return of 38 percent, what is the NPV for this project? |
(Click to select)-2,255.58-2,191.13-2,148.17-2,105.21-2,062.24 |
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