3. Suppose a firm uses the NPV decision rule. Considering the following cash flows, should the...

 

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3. Suppose a firm uses the NPV decision rule. Considering the following cash flows, should the firm accept this project: Year 0 1 2 3 a. a required return of 11%? b. a required return of 25%? 4. What is the IRR of the following set of cash flows? 1 2 23 Year Cash Flow 1 Cash Flow -$28,000.00 $12,000.00 $15,000.00 $11,000.00 Cash Flow 2 Cash Flow -$16,400 $7,100 $8,400 $6,900 3. Suppose a firm uses the NPV decision rule. Considering the following cash flows, should the firm accept this project: Year 0 1 2 3 a. a required return of 11%? b. a required return of 25%? 4. What is the IRR of the following set of cash flows? 1 2 23 Year Cash Flow 1 Cash Flow -$28,000.00 $12,000.00 $15,000.00 $11,000.00 Cash Flow 2 Cash Flow -$16,400 $7,100 $8,400 $6,900

Answer rating: 100% (QA)

Q 3 NPV cfPVIF rn Initial cost PVIF 1r n NPV cf1r n Initial cost NPV11 120... View the full answer