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Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects

 

Suppose your firm is considering investing in a project with the cash flows shown as follows, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the project are three and three and a half years, respectively. Time Cash Flow 0 -100 1 30 30 3 40 Use the NPV decision rule to evaluate this project; should it be accepted or rejected?

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