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QUESTION 9 1. Project evaluation A project being considered has the following projected cash flows: Project A cash flow ($800,000) Year 250,000 2 250,000 250,000

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QUESTION 9 1. Project evaluation A project being considered has the following projected cash flows: Project A cash flow ($800,000) Year 250,000 2 250,000 250,000 250,000 250,000 The required rate of return (cost of capital) on this project is 10 percent. For each of the following methods, stipulate if the project would be chosen. (You must show your work to receive credit.) B. Discounted payback period Corporate policy = 4.0 years (8 points) Accept or Reject

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