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2. A project that provides annual estimated cash flows of $120 for eight years costs $600 today. Suppose the financial manager has a required return of 8% (a) By the NPV rule, is this a good project to the financial manager? What if the required return is 24%? At what discount rate would you be indifferent between accepting the project and rejecting it? he/she accept the project? the decisions consistent using both the NPV and IRR rules? Why? (b) What is the payback period? If the managers cutoff point is 4 years, would (c) Calculate the IRR. What is the managers decision based on the IRR rule? Are

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Saluhon fo 120-k 6-8 0x342121-0 Initial inetrnet 120hope it helps ...

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