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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 Cash Flow
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 -$28, 600 1 12, 600 2 15, 600 3 11, 600 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $___________ At a required return of 11 percent, should the firm accept this project? Yes No What is the NPV for the project if the required return is 25 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 25 percent, should the firm accept this project? Yes No
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