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A Project Has the Following Cash Flows:CF 0 -10,000CF 1

Question 108

Multiple Choice

A project has the following cash flows:CF 0 -10,000CF 1 $1,500CF 2 $4,400CF 3 $8,000CF 4 $8,800Assuming a required rate of return of 6%,would management accept this project?NPV @ r = 6% = $19,019 (rounded up) PV (Costs) = $10,000PI = $19,019 / $10,000 = 1.90


A) 1.01
B) 1.90
C) 1.20
D) 1.33

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