A firm is evaluating a project with the following cash flow: Year 0: -$28,000 Year 1: $12,000 Year...

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Finance

A firm is evaluating a project with the following cash flow:
Year 0: -$28,000
Year 1: $12,000
Year 2: $15,000
Year 3: $11,000
A) If the required return is 14%, what is the NPV?
B) What is the IRR?
C) If the required return is 11%, using the NPV rule, should thefirm accept the project?
D) What if the required return is 25%, should the firm acceptthe project?

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Solution A If the required return is 14 what the NPV 149302B The IRR 1718 C If the See Answer

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A firm is evaluating a project with the following cash flow:Year 0: -$28,000Year 1: $12,000Year 2: $15,000Year 3: $11,000A) If the required return is 14%, what is the NPV?B) What is the IRR?C) If the required return is 11%, using the NPV rule, should thefirm accept the project?D) What if the required return is 25%, should the firm acceptthe project?