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A project has the following cash flows: Year 0: CF = -165,000 Year 1: CF = 10,000 Year 2 through Year 5 CF = 25,000
A project has the following cash flows:
Year 0: CF = -165,000
Year 1: CF = 10,000
Year 2 through Year 5 CF = 25,000
Year 6 CF = 10,000
Using both IRR and NPV as decision rules, will you accept the project? The required rate of return is 10%.
a. no for NPV and yes for IRR
b. yes for NPV and no for IRR
c. no for both measures
d. There is not enough information to answer the question
e. yes for both measures
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