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QUESTION 1. The cost of the project is $100,000. You expect the project to make $500,000 in 7 years (CF of year 7 =
QUESTION 1. The cost of the project is $100,000. You expect the project to make $500,000 in 7 years (CF of year 7 = $500,000). Your cost of capital is 25%. The decision that you should make for this project is Reject it because the NPV < 0 Reject it because the NPV > 0 Accept it because the IRR < 25% O Accept it because the IRR > 25%.
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