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you are evaluating the following project Cash flows in year 0- $6000 cash flows in year 1- $8,800 cash flows in year 2- $6667 cash
you are evaluating the following project
Cash flows in year 0- $6000
cash flows in year 1- $8,800
cash flows in year 2- $6667
cash flows in year 3- $-10000
suppose the cost of capital is 15%. which of the following statements are accurate about making the investment decision?
1. since the NPV is positive (=$118.22), you should accelt the project
2. since the IRR (=10.1%) is less than the cost of capital, you shokld reject the product
3. you would prefer using the IRR to using the NPV when making an investment decision for this project
options:
only 1
1 and 3
1 2 and 3
2 and 3
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