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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $30,000 1 19,000 2 14,000 3 10,000 a.
A firm evaluates all of its projects by using the NPV decision rule. |
Year | Cash Flow | ||
0 | $30,000 | ||
1 | 19,000 | ||
2 | 14,000 | ||
3 | 10,000 | ||
a. At a required return of 16 percent, what is the NPV for this project? b. At a required return of 38 percent, what is the NPV for this project? |
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