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B.) A firm is considering a project that will require an immediate payment of $500. It will then produce four identical cash flows of $100.
B.) A firm is considering a project that will require an immediate payment of $500. It will then produce four identical cash flows of $100. Then it will produce one last cash flow of $250. If the WACC of this firm is 10.5% and the cost of equity for this firm is 15.0%, should the firm accept or reject this project?
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