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A. What is the NPV for the following project cash flows at a discount rate of 15%? C0 = - $1,000, C1 = $700, C2

A. What is the NPV for the following project cash flows at a discount rate of 15%? C0 = - $1,000, C1 = $700, C2 = $700.

- $308.70

- $138.00

$138.00

$308.70

B. As the discount rate is increased, the NPV of a specific project will:

increase.

decrease.

remain constant.

decrease to zero, then remain constant.

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