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A project requires an initial investment of $40,000 and will then generate free cash flows...

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Finance

A project requires an initial investment of $40,000 and will then generate free cash flows of $19,000 every year for 4 years. The project has a required return of 12%.

What is the project's NPV (in $ million)?

What is the project's internal rate of return?

Should you accept this project?

Yes, based on NPV

No

Yes, based on IRR

Yes, based on both IRR and NPV

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