Project has cash flows

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1. A project has cash flows of -$119,000, $52,800, $60,200, and $33,100 for years 0 to 3, respectively. The required rate of return is 12%. Based on the net present value of ____ you should ____ the project

A. -$147.60, accept

B. $230.75, accept

C. -$1995.84 reject

D. -$306.15 reject

E. $283.60 accept

2. A project has cash flows of -$128,000, $52,000, $60,200, and $183,100 for years 0 to 3 respectively. The required payback period is two years. Based on the payback period of _______ for this project, you should, _____ the project.

A. 2.46, accept

B. 1.79 accept

C. 2.29, reject

D. 2.08, reject

E. 2.79, accept

Reference no: EM131318843

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