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Your firm has identified three potential investment projects. The projects and their cash flows are shown here: . Suppose all cash flows are certain and
Your firm has identified three potential investment projects. The projects and their cash flows are shown here: Suppose all cash flows are certain and the riskfree interest rate is
a What is the NPV of each project?
b If the firm can choose only one of these projects, which should it choose based on the NPV decision rule?
c If the firm can choose any two of these projects, which should it choose based on the NPV decision rule?
a What is the NPV of each project?
Find the NPV of project ARound to two decimal places.
The NPV of project A is $ million. Click on the following icon in order to copy its contents into a spreadsheet.
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