Question
Assume an investment has cash flows of $39,700, $22,750, $16,500, and $11,500 for Years 0 to 3, respectively. What is the NPV if the required
Assume an investment has cash flows of $39,700, $22,750, $16,500, and $11,500 for Years 0 to 3, respectively. What is the NPV if the required return is 12.6 percent? Should the project be accepted or rejected?
A. $2,276.89; accept
B. $1,684.22; reject
C. $1,573.47; accept
D. $1,684.22; accept
E. $1,573.47; reject
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
