Discuss about the npv decision rule for a firm

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Reference no: EM131807697

A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm acceot the following project?

Year
0	-$26,000
1	11,000
2	14,000
3	10,000

For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?

Reference no: EM131807697

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