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Here is the cash flow timeline for this problem: Calculate the NPV of this investment opportunity if your cost of capital is 8.9%. The NPV
Here is the cash flow timeline for this problem: Calculate the NPV of this investment opportunity if your cost of capital is 8.9%. The NPV of this investment opportunity is I million. (Round to two decimal places.) Should you make the investment? (Select the best choice below.) A. Yes, because the project will generate cash flows forever. B. No, because the NPV is not greater than the initial costs. C. Yes, because the NPV is positive. D. No, because the NPV is less than zero. Calculate the IRR. The IRR of the project is %. (Round to two decimal places.) Does the IRR rule agree with the NPV rule? (Select the best choice below.) A. Since the IRR exceeds the 8.9% discount rate, the IRR rule gives the same answer as the NPV rule. B. Since the IRR exceeds the 8.9% discount rate, the IRR rule gives a different answer than the NPV rule. C. Since the IRR is less than the 8.9% discount rate, the IRR rule gives a different answer than the NPV rule. D. Since the IRR is less than the 8.9% discount rate, the IRR rule gives the same answer as the NPV rule
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