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    Financial Management Undiscounted Free Cash Flows

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    Year Undiscounted free cash flows
    0 (380,000)
    1 20,000
    2 30,000
    3 200,000
    4 175,000
    5 130,000
    6 145,000

    Required rate of return 15%

    5. Assume the required rate of return increases to 20%. The net present value of the investment would

    a. increase
    b. decrease
    c. stay the same
    d. become negative
    e. both "b" and "d", above.

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    The expert examines financial management undiscounted free cash flows.