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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $28,000 1 18,000 2 13,000 3 10,000 (a)
A firm evaluates all of its projects by using the NPV decision rule. |
Year | Cash Flow | ||
0 | $28,000 | ||
1 | 18,000 | ||
2 | 13,000 | ||
3 | 10,000 | ||
(a) | At a required return of 17 percent, what is the NPV for this project? |
(b) | At a required return of 37 percent, what is the NPV for this project? |
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