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A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 $31,000 1 24,000 2 14,000 3 6,000 a.
| A firm evaluates all of its projects by using the NPV decision rule. |
| Year | Cash Flow | ||
| 0 | $31,000 | ||
| 1 | 24,000 | ||
| 2 | 14,000 | ||
| 3 | 6,000 | ||
| a. At a required return of 27 percent, what is the NPV for this project? |
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| b. At a required return of 40 percent, what is the NPV for this project? |
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