Question: Suppose AMEX, Inc. is considering a project that has a weighted average cost of capital (WACC) at 8%. Estimated cash flows for the project are

Suppose AMEX, Inc. is considering a project that has a weighted average cost of capital (WACC) at 8%. Estimated cash flows for the project are as follows: Year 1 2 0 -400 3 120 Cash Flow 210 230 Use the NPV method to determine whether the firm should accept or reject this project. REJECT O ACCEPT

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