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A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 1

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A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 1 2 3 Cash Flow -$27,700 11,700 14,700 10,700 What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV 2081.23 At a required return of 12 percent, should the firm accept this project? No Yes What is the NPV for the project if the required return is 24 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 $ At a required return of 24 percent should the firm accept this project? Yes No

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