The project using risk-adjusted discount rates. Introduction: Net present value (NPV) refers to the discounted value of the future cash flows at present. The company should accept the project even if the net present value is positive or greater than zero. If there are two mutually exclusive projects, then the company has to select the project that has a higher net present value.

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Chapter 12, Problem 12.9P

a)

Summary Introduction

To determine: The project using risk-adjusted discount rates.

Introduction:

Net present value (NPV) refers to the discounted value of the future cash flows at present. The company should accept the project even if the net present value is positive or greater than zero. If there are two mutually exclusive projects, then the company has to select the project that has a higher net present value.

b)

Summary Introduction

To discuss: The Person X’s preferred recommendation of the project.

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