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Calculating NPV. For the cash flows below, suppose the firm uses the NPV decision rule. At a required return of 8 percent, should the firm
Calculating NPV. For the cash flows below, suppose the firm uses the NPV decision rule. At a required return of 8 percent, should the firm accept this project? What if the required return was 20 percent?
YEAR/ CASHFLOWS
0 -178500 1 80000 2 81000 3 55000
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