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What is the projects NPV

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Reference no: EM132471837

A firm evaluates all of its projects by applying the NPV decision rule. A proposed project is expected to have the following cash flows:

Year                Cash Flow

0                    $ (26,000)

1                      $ 11,000

2                      $ 14,000

3                         $ 10,000

Question a) At a required return of 11 percent, what is the project's NPV? Should the firm accept this project?

Question b) At a required return of 24 percent, what is the project's NPV? Should the firm accept this project?

Reference no: EM132471837

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