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May 25, 2013

Homework Help: finance

Posted by goshtaba on Monday, January 16, 2012 at 10:39pm.

The required investment is $1 million, and anticipated year-end cash flows are as follows:



Year 1 2 3 4

Cash flow $300,000 $400,000 $500,000 $200,000



Compute the net present value rate of return using a 10 percent required return. What should be decision rule in this example.

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