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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $27,000 1 21,000 2 17,000 3 6,000 a.

A firm evaluates all of its projects by using the NPV decision rule.

Year Cash Flow
0 $27,000
1 21,000
2 17,000
3 6,000

a. At a required return of 15 percent, what is the NPV for this project?

Answer Options Are

A. $8,060

B. $8,463

C. $7,738

D. $8,946

b. At a required return of 36 percent, what is the NPV for this project?

Answer options are

A. $18.49

B. 16.90

C. 17.96

D. 17.25

E. 17.61

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