Question
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: YearCash Flow0-$28,500112,500215,500311,500 What
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows:
YearCash Flow0-$28,500112,500215,500311,500
What is the NPV for the project if the required return is 10 percent?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
NPV$
At a required return of 10 percent, should the firm accept this project?YesNo
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$
At a required return of 26 percent, should the firm accept this project?YesNo
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