A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0
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Question:
A firm evaluates all of its projects by using the NPV decision rule. |
Year | Cash Flow | ||
0 | $31,000 | ||
1 | 22,000 | ||
2 | 12,000 | ||
3 | 7,000 | ||
a. At a required return of 13 percent, what is the NPV for this project? |
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b. At a required return of 40 percent, what is the NPV for this project? |
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