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You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows: 0 1 2 3 4

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You are evaluating a proposed project for your company. The project is expected to generate the following end-of-year cash flows: 0 1 2 3 4 5 7 8 + + -$3,000 $300 $500 $600 $600 $800 $800 $800 $200 You have been told you should evaluate this project with an interest rate of 9%. What is the project's NPV? $135.60 $235.97 $185.79 $169.58 O $119.39 Your group leader has now told you that the risk of the project was understated before. As a result, she tells you to recalculate the projects with an 11% interest rate. What is the new NPVY $66.36 *71.99 $115.38 $22.97 -$109.76

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