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A five - year project has a projected net cash flow of $ 1 5 , 0 0 0 , $ 2 5 , 0

A five-year project has a projected net cash flow of $15,000,$25,000,$30,000,
$20,000, and $15,000 in the next five years. It will cost $50,000 to implement
the project. If the required rate of return is 20 percent, conduct a discounted
cash flow calculation to determine the NPV.
You work for the 3T company, which expects to earn at least 18 percent on its
investments. You have to choose between two similar projects. Below is the cash
information for each project. Your analysts predict that inflation rate will be a
stable 3 percent over the next 7 years. Which of the two projects would you
fund if the decision is based only on financial information? Why?
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