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The Hudson Corporation makes an investment of $24,000 that provides the following cash flow:

Year

Cash Flow

1................

$ 13,000

2................

13,000

3................

4,000

a. What is the net present value at an 8 percent discount rate?

b. What is the internal rate of return?

c. In this problem, would you make the same decision under both parts a and b?

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