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Show Work and Forumulas needed to calculate NPV: Calculating NPV: For the cash flows in the previous problem (noted above), suppose the firm uses the
Show Work and Forumulas needed to calculate NPV:
Calculating NPV: For the cash flows in the previous problem (noted above), suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 25%?
| Year | Cash Flow |
| 0 | -$28,000 |
| 1 | 12000 |
| 2 | 15000 |
| 3 | 11000 |
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