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Initial = 80,000 Cash Flow Present Value Cash Flow Year 1 35,000 30,000 Year 2 25,000 20,000 Year 3 20,000 15,000 Year 4 20,000 12,000

Initial = 80,000

Cash Flow Present Value Cash Flow
Year 1 35,000

30,000

Year 2 25,000

20,000

Year 3 20,000

15,000

Year 4 20,000 12,000

Which of the following statements are true?

a. using NPV, project should be accepted

b. using NPV, project should not be accepted

c. using IRR, project should be accepted

d. using IRR, project should not be accepted

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