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The C Corporation, a firm in the 34% marginal tax bracket with a 15% required rate of return or discount rate, is considering a new
The C Corporation, a firm in the 34% marginal tax bracket with a 15% required rate of return or discount rate, is considering a new project. This project involves the introduction of a new product. This project is expected to last 5 years and then, because this is somewhat of a fad product, it will be terminated. Given the following information, determine the net cash flows associated with the project, the projects net present value and the internal rate of return. Apply the appropriate decision criteria
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