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Your firm is considering a project that provides the following projected cash flows. Year Cash Flow 1 $ 2 , 0 0 0 , 0

Your firm is considering a project that provides the following projected cash flows.
Year Cash Flow
1 $2,000,000
23,000,000
34,000,000
45,000,000
56,000,000
The projects initial investment is $10,000,000. The required return for this project is 15 percent. Find the projects net present value (NPV). Is this a good project based on the NPV decision rule? Why?

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