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3 A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash

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3 A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 528,800 7.5/10 points awarded 1 2 3 12,800 15,800 11,800 04:18:45 Scored What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 4,759.72 At a required return of 10 percent, should the firm accept this project? Yes No What is the NPV for the project if the required return is 26 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ -28,405.81 x At a required return of 26 percent, should the firm accept this project? Yes No

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