Question
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 | $ | 28,100 | |
1 | 12,100 | ||
2 | 15,100 | ||
3 | 11,100 | ||
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 | $ |
At a required return of 12 percent, should the firm accept this project? | ||||
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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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