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You are evaluating a capital budgeting project that will cost $25,000 Year 1 ==> $12,000 Year 2 ==> $20,000 Year 3 ==> $9,000 The required
You are evaluating a capital budgeting project that will cost $25,000
- Year 1 ==> $12,000
- Year 2 ==> $20,000
- Year 3 ==> $9,000
The required return is 13% and the critical acceptance level is 1.9 years. Calculate the Net Present Value and determine whether or not the project should be accepted based solely on the Net Present Value.
a. The NPV is $16,000.00 and we should accept the project
b. The NPV is $57,519.85 and we should reject the project
c. The NPV is $16,000.00 and we should reject the project
d. The NPV is $57,519.85 and we should accept the project
e. None of the other answers is correct
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