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The NPV for a capital project is $150,000, and the project requires a $6 million outlay in year 1. Your CEO is fiscally conservative. To
The NPV for a capital project is $150,000, and the project requires a $6 million outlay in year 1. Your CEO is fiscally conservative. To best support the decision on whether to take on the project while reassuring your CEO, you will:
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Create a range of scenarios to determine an expected NPV, and measure the projects payback period.
Accept the project, as it has a positive NPV.
Recommend that the CEO become more aggressive in her decision making
Analyze further, and create a range of scenarios to determine an expected NPV
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