Question
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively. |
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Time: | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
Cash flow | $7,100 | $1,140 | $2,340 | $1,540 | $1,540 | $1,340 | $1,140
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Use the NPV decision rule to evaluate this project.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
NPV | $ |
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