For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow -$ 155,000 61,000 78,000 62,000 1 2 3 At a required return of 10 %, what is the NPV of the project? At a required return of 19%, what is the NPV of the project?

For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow -$ 155,000 61,000 78,000 62,000 1 2 3 At a required return of 10 %, what is the NPV of the project? At a required return of 19%, what is the NPV of the project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 10P

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Question

100%

For the given cash flows, suppose the firm uses the NPV decision rule.
Year Cash Flow
-$ 155,000
61,000
78,000
62,000
1
2
3
At a required return of 10 %, what is the NPV of the project?
At a required return of 19%, what is the NPV of the project?

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