# Question

Firm W has the opportunity to invest $150,000 in a new venture. The projected cash flows from the venture are as follows.

Determine if Firm W should make the investment, assuming that:

a. It uses a 6 percent discount rate to compute NPV.

b. It uses a 3 percent discount rate to compute NPV.

Determine if Firm W should make the investment, assuming that:

a. It uses a 6 percent discount rate to compute NPV.

b. It uses a 3 percent discount rate to compute NPV.

## Answer to relevant Questions

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