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Ganders Corp. is considering a project that has the following cash flow and required return data. What is the project's NPV? Do you think the
Ganders Corp. is considering a project that has the following cash flow and required return data. What is the project's NPV? Do you think the company should accept the project?
Required Return: 5.00%
Year | 0 | 1 | 2 | 3 |
Cash flows | -$1,450 | $500 | $500 | $500 |
$-88.38; accept | ||
$-88.38; reject | ||
$88.38; accept | ||
$88.38; reject | ||
$-206.57; reject |
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