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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $27,000 1 18,000 2 16,000 3 10,000 a.
A firm evaluates all of its projects by using the NPV decision rule. |
Year | Cash Flow | ||
0 | $27,000 | ||
1 | 18,000 | ||
2 | 16,000 | ||
3 | 10,000 | ||
a. At a required return of 17 percent, what is the NPV for this project? |
|
b. At a required return of 33 percent, what is the NPV for this project? |
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