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As CFO, you are required to conduct analysis to show the Board if a proposed project should be approved. Data related to the project
As CFO, you are required to conduct analysis to show the Board if a proposed project should be approved. Data related to the project is provided in Exhibit A. Using your answers from the previous question, your reason for the making the recommendation to the Board is [npv5]. Exhibit A Project's initial outlay Cash flow years 1 - 7 Cash flow year 8 Required return $ 000s -350 75 185 15% O when NPV < 0, it will take away value from the firm O when NPV < 0, it will add value to the firm when NPV > 0, it will add value to the firm when NPV = 0, it will add value to the firm
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