Will the company accept or reject the project

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Problem - ABC Company has the following cash flows:

CF 0 -$2,800

CF 1 $0

CF 2 $500

CF 3 $800

CF 4 $3,000

CF 5 $6,000

If this project has a required rate of return of 15%, and the rate of return will increase by a growth rate of 6% forever, will the company accept or reject the project? Please show your calculation with two decimals.

Reference no: EM132791606

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