Question: . A possible project will cost $75,000 but will result in cash inflows of $20,000, $25,000, $30,000, and $50,000 in each of the next 4
. A possible project will cost $75,000 but will result in cash inflows of $20,000, $25,000, $30,000, and $50,000 in each of the next 4 years. The required rate of return is 0.2.What is the impact on the NPV if the rate of return is reduced by half, assuming inflation rate remains constant at 3 percent? (5 marks)
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