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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $25,000 1 22,000 2 13,000 3 8,000 Required:
A firm evaluates all of its projects by using the NPV decision rule.
Year | Cash Flow | ||
0 | $25,000 | ||
1 | 22,000 | ||
2 | 13,000 | ||
3 | 8,000 | ||
Required: | |
(a) | At a required return of 23 percent, what is the NPV for this project? |
(b) | At a required return of 41 percent, what is the NPV for this project? |
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