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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

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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 0 -$28,000 1 12,000 2 15,000 3 11,000 What is the NPV of the project if the required return is 11%? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ 3028.28 At a required return of 11% should the firm accept this project? Yes O No What is the NPV of the project if the required return is 25%? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ At a required return of 25% should the firm accept this project? O Yes O No

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