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Compute the Pl static for your firm's new project if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round
Compute the Pl static for your firm's new project if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round your final answer to 2 decimal laces.) Your firm's project Time 1 3 5 6 Cash Flow -940 170 430 630 630 230 630 0 2 4 Should the project be accepted or rejected? Multiple Choice Accepted Rejected Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. O 3 1 17,000 2 37,000 -27,000 8.000 Time: Project A Cash Flow Project B Cash Flow -37,000 17,000 27,000 57,000 Use the NPV decision rule to evaluate these projects; which one(s) should it be accepted or rejected? Multiple Choice accept both A and B reject A, accept B accept A reject B accept neither A nor B Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 10 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively. Time 0 1 3 4 6 2 500 5 300 Cash Flow - 1,070 100 700 700 700 Use the NPV decision rule to evaluate this project; should it be accepted or rejected? Multiple Choice $1,019.57, accept O $2.089.57, accept o $-303.12, reject O $926.88, accept
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