Chapter 11-1

Using a financial calculator, input the following: CF0 = -10000, CF1 = -500000, CF2 = -1000000, = 3000000, and I = 12 to solve for NPV = $881,718.29 ( $881,718. The other NPVs were determined in the same manner. If the project is of average risk, it should be accepted because the expected NPV of the total project is positive. ................
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