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you would like to invest in the following project. year cash Flow 0 -$55000 1 $30000 2 $37000 Victoria, your boss, insists that only project
you would like to invest in the following project.
year | cash Flow |
0 | -$55000 |
1 | $30000 |
2 | $37000 |
Victoria, your boss, insists that only project that can return at least $ 1.10 in today's dollars for every $1 invested can be accepted. She also insists on applying a 10% discount rate to all cash flows. based on these criteria, you should:
select one:
O a. accept the project because it returns almost $1.22 for every $1 invested b accept the project because it has a positive P c. accept the project because the NPV is $2,851. d. reject the project because the PI is 1.05. e, reject the project because the IRR exceeds 10%Step by Step Solution
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