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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $27,000 1 $22,000 2 $13,000 3 $7,000 Required:
A firm evaluates all of its projects by using the NPV decision rule.
Year Cash Flow
0 $27,000
1 $22,000
2 $13,000
3 $7,000
Required:
(a) At a required return of 21 percent, what is the NPV for this project?
(b) At a required return of 33 percent, what is the NPV for this project?
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