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Q2. Maryam Shaaban Industries is considering a project which has the following cash flows: Year 0 1 2 3 Cash Flow ? $4,000 4.000 3,000

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Q2. Maryam Shaaban Industries is considering a project which has the following cash flows: Year 0 1 2 3 Cash Flow ? $4,000 4.000 3,000 1.500 The project has a payback period of 2.5 years. The firm's cost of capital is 12 percent. a) What is the project's net present value (NPV)? b) What does the NPV rule advice regarding this investment opportunity? >

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