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Ted a project manager wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in years
Ted a project manager wants to invest in a project with an initial cost of $58,500 and cash flows of $32,400 and $38,500 in years 1 & 2 . Rose, his boss requires a discount rate of 10%. And also a return of $1.10 in today's dollars for every $1 invested . Will Ted get his project approved ?
A. Yes bc P1 is greater than 1
B. No the project does not meet the $1.10 per $1 requirement
C. Yes bc NPV is positive
D. No because the project does not meet either requirement
E. Yes both requirements are met
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