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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $ 25,000 1 21,000 2 15,000 3 6,000
| A firm evaluates all of its projects by using the NPV decision rule. |
| Year | Cash Flow |
|---|---|
| 0 | $ 25,000 |
| 1 | 21,000 |
| 2 | 15,000 |
| 3 | 6,000 |
| a. At a required return of 19 percent, what is the NPV for this project? |
|
|
| b. At a required return of 38 percent, what is the NPV for this project? |
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Public Finance
Authors: Harvey Rosen
6th International Edition
0071121234, 978-0071121231
