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A project that costs $ 2 , 1 0 0 to install will provide annual cash flows of $ 5 4 0 for the next
A project that costs $ to install will provide annual cash flows of $ for the next years. The firm accepts projects with payback periods of less than years.
a What is this project's payback period?
Note: Round your answer to decimal places.
b Will the project be accepted?
c What is the project NPV if the discount rate is
Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to decimal places.
c Should this project be pursued?
d What is the project NPV if the discount rate is
Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to decimal places.
d Should this project be pursued?
e Will the firms decision change as the discount rate changes?
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