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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 14,000 3 7,000 a.
A firm evaluates all of its projects by using the NPV decision rule.
Year Cash Flow
0 $27,000
1 22,000
2 14,000
3 7,000
a. At a required return of 28 percent, what is the NPV for this project?
b. At a required return of 39 percent, what is the NPV for this project?
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