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The firm has a project with the following cash flows: Year Cash Flow 0 -$90,000 1 35,000 2 43,000 3 40,000 The firm evaluates
The firm has a project with the following cash flows: Year Cash Flow 0 -$90,000 1 35,000 2 43,000 3 40,000 The firm evaluates all of its projects by applying the IRR rule. If the required return is 17 percent, should the firm accept the following project? For the cash flows in part a, suppose the firm uses the NPV decision rule. At a required return of 9 percent, should the firm accept this project? For the cash flows in part a, suppose the firm uses the NPV decision rule. At a required return of 23 percent, should the firm accept this project?
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