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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

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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 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 tot 10 are equal. IRR 17.50% 8,00% Reject O IRR - 8.45% 8.00% Accept IRR. 1455% 8.00% Accept IRR - 10.25% > 8.00% Accept

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