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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0) $28,000 1) 20,000 2) 15,000 3) 6,000 Required:

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

Year Cash Flow

0) $28,000

1) 20,000

2) 15,000

3) 6,000

Required:

(a) At a required return of 26 percent, what is the NPV for this project?

(b) At a required return of 40 percent, what is the NPV for this project?

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