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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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