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A new project requires an initial investment of $12,000 today and is expected to generate cash flows of $2,350 per year for the next 10
A new project requires an initial investment of $12,000 today and is expected to generate cash flows of $2,350 per year for the next 10 years. The firm has a cost of capital or required rate of return of 8 percent. Should this project be accepted, and why? Use the IRR criterion. Notice all CFs from t =1 to t = 10 are equal.
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