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Suppose a firm uses the NPV decision rule. Considering the following cash flows, should the firm accept this project: . At a required return of
Suppose a firm uses the NPV decision rule. Considering the following cash flows, should the firm accept this project: . At a required return of 11%? At a required return of 25%? Cash Flow $28,000.00 $12,000.00 Year 1 2 $11,000.00 Accept at 11%, reject at 25% Cannot be determined O Reject both projects O Accept at 25%, reject at 11% Accept both projects
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