Question: Suppose that projects cash flows are C0 = $115, C1 = $120, C2 = $80, C3 = $40, C4 = $130. Required rate of return
Suppose that projects cash flows are C0 = $115, C1 = $120, C2 = $80, C3 = $40, C4 = $130. Required rate of return is 15%. Compute NPV and IRR of this project. Should you take this project? What would be an appropriate IRR rule for this project (i.e., for which required rates of return the project should be accepted)?
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