1.A firm evaluates all of its projects by using the NPV decision rule. At a required return of 10 percent, the NPV for the following project is $ and the firm should (Click to select)acceptreject the project. At a required return of 29 percent, the NPV is $ and the firm should (Click to select)rejectaccept the project. (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16))

Year

Cash Flow

0

$26,000

1

24,000

2

14,000

3

7,000

2. If the relevant discount rate for the following set of cash flows is 11 percent, the profitability index is . If the discount rate is 16 percent, the profitability index is . If the discount rate is 22 percent, the profitability index is . (Round your answers to 3 decimal places. (e.g., 32.162))

Year	Cash Flow
0	$8,900
1	4,300
2	3,900
3	5,700