An investment project has the following cash flows: CF0 = -1,000,000; C01 C08 =...

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Finance

  1. An investment project has the following cash flows: CF0 = -1,000,000; C01 C08 = 200,000 each. If the required rate of return is 12%, what decision should be made using NPV?

  • How would the IRR decision rule be used for this project, and what decision would be reached?
  • How are the above two decisions related?

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