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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $29,000 1 19,000 2 13,000 3 7,000 Required:
| A firm evaluates all of its projects by using the NPV decision rule. |
| Year | Cash Flow | ||
| 0 | $29,000 | ||
| 1 | 19,000 | ||
| 2 | 13,000 | ||
| 3 | 7,000 | ||
| Required: | |
| (a) | At a required return of 25 percent, what is the NPV for this project? |
| (b) | At a required return of 34 percent, what is the NPV for this project? |
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