Question
A firm evaluates all of its projects by applying the NPV decision rule. A proposed project is expected to have the following cash flows: Year
A firm evaluates all of its projects by applying the NPV decision rule. A proposed project is expected to have the following cash flows:
| Year | Cash Flow |
| 0 | $ (26,000) |
| 1 | $ 11,000 |
| 2 | $ 14,000 |
| 3 | $ 10,000 |
a) At a required return of 11 percent, what is the project's NPV? Should the firm accept this project?
b) At a required return of 24 percent, what is the project's NPV? Should the firm accept this project?
Is there an excel formula to complete these questions?
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The Handbook Of Energy Trading
Authors: Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli
1st Edition
1119953693, 978-1119953692
