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Firm evaluates an investment project that requires $195,000 initial spending but will generate $80,000, $78,000, and $100,000 operating cash flows in the next three years.

Firm evaluates an investment project that requires $195,000 initial spending but will generate $80,000, $78,000, and $100,000 operating cash flows in the next three years. Should this firm undertake this investment project if it requires 22% return on its investments?

No because the NPV is negative.

Yes because the NPV is negative.

Yes because the NPV is positive.

No because the NPV is positive.

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