A firm evaluates all of its projects by using the NPV decision rule.
Year Cash Flow
0 $26,000
1- 23,000
2 -17,000
3 - 7,000
Required:
(a) At a required return of 26 percent, what is the NPV for this project?
(b) At a required return of 32 percent, what is the NPV for this project?
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