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Investing in a project with the cash flows

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Reference no: EM133076514

Suppose your firm is considering investing in a project with the cash flows shown as follows, and that the required rate of return on projects of this risk class is 7 percent.

Time 0 1 2 3 4 5 6

Cash flow -125,000 75,000 105,000 105,000 78,000 55,000 25,000

Use the NPV decision rule to evaluate this project; should it be accepted or rejected? Show your calculations for the NPV.

Reference no: EM133076514

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