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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $ 25,000 1 18,000 2 16,000 3 9,000
| A firm evaluates all of its projects by using the NPV decision rule. |
| Year | Cash Flow |
|---|---|
| 0 | $ 25,000 |
| 1 | 18,000 |
| 2 | 16,000 |
| 3 | 9,000 |
| a. At a required return of 26 percent, what is the NPV for this project? |
|
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| b. At a required return of 38 percent, what is the NPV for this project? |
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
