Suppose your firm is considering investing in a project with the cash flows shown below, that...
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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively Time: 1 Cash flow: -$7,100 $1,140 2 $2,340 3 5 6 $1,540 $1,540 $1,340 $1,140 Use the NPV decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV Should it be accepted or rejected? O accepted O rejected Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively Time: 1 Cash flow: -$7,100 $1,140 2 $2,340 3 5 6 $1,540 $1,540 $1,340 $1,140 Use the NPV decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.) NPV Should it be accepted or rejected? O accepted O rejected
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