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Look at the cash flows for projects F and G given below. The cost of capital was assumed to be 1 0 % . Assume
Look at the cash flows for projects and given below.
The cost of capital was assumed to be Assume that the forecasted cash flows for projects of this type are overstated by on
average. That is the forecast for each cash flow from each project should be reduced by But a lazy financial manager, unwilling to
take the time to argue with the projects' sponsors, instructs them to use a discount rate of
a What are the projects' true NPVsDo not round intermediate calculations. Round your answers to nearest dollar amount.
b What are the NPVs at the discount rate? Do not round intermediate calculations. Round your answers to nearest dollar
amount.
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