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Which of the following statements is CORRECT? a. The regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes
Which of the following statements is CORRECT?
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Harry's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.
WACC: | 7.50% | |||||
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flows | -$1,000 | $310 | $310 | $310 | $310 | $310 |
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