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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $ 27,000 1 19,000 2 15,000 3 7,000
| A firm evaluates all of its projects by using the NPV decision rule. |
| Year | Cash Flow |
|---|---|
| 0 | $ 27,000 |
| 1 | 19,000 |
| 2 | 15,000 |
| 3 | 7,000 |
| a. At a required return of 26 percent, what is the NPV for this project? |
|
|
| b. At a required return of 40 percent, what is the NPV for this project? |
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
