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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $29,000 1 19,000 2 17,000 3 7,000 Required:

A firm evaluates all of its projects by using the NPV decision rule.

Year Cash Flow

0 $29,000

1 19,000

2 17,000

3 7,000

Required:

(a) At a required return of 24 percent, what is the NPV for this project?

(b) At a required return of 39 percent, what is the NPV for this project?

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