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You have the chance to participate in a project that produces the following cash flows: Cash Flows, $ C 0 C 1 C 2 +4,200
You have the chance to participate in a project that produces the following cash flows: |
Cash Flows, $ | ||
C0 | C1 | C2 |
+4,200 | +4,800 | 10,400 |
a. | The internal rate of return is 10%. If the opportunity cost of capital is 12%, what is the NPV of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) |
NPV | $ |
b. | Would you accept the offer? | ||||
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