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0 NPV 1 2 3 4 5 6 7 8 9 10 -50000 -100000 -150000 -200000 Discount Rate The owner of a hair salon spends
0 NPV 1 2 3 4 5 6 7 8 9 10 -50000 -100000 -150000 -200000 Discount Rate The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year. She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. If her discount rate is 6%, should she accept the project? O A. No, because the NPV is positive at that rate. O B. No, because the NPV is negative at that rate. O C. Yes, because the NPV is positive at that rate. OD. Cannot be determined from the information given
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