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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $30,000 1 23,000 2 15,000 3 9,000 Required:
A firm evaluates all of its projects by using the NPV decision rule. |
Year | Cash Flow | ||
0 | $30,000 | ||
1 | 23,000 | ||
2 | 15,000 | ||
3 | 9,000 | ||
Required: | |
(a) | At a required return of 28 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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