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Question

Assume an investment has cash flows of −$39,700, $22,750, $16,500, and $11,500 for Years 0 to 3, respectively.

What is the NPV if the required return is 12.6 percent? Should the project be accepted or rejected?

A. $2,276.89; accept

B. $1,684.22; reject

C. $1,573.47; accept

D. $1,684.22; accept

E. $1,573.47; reject

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