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$29,000

1 13,000

2 16,000

3 12,000

a) What is the NPV for the project if the required return is 12 percent?

b) At a required return of 12 percent, should the firm accept this project?

c) What is the NPV for the project if the required return is 24 percent?

d) At a required return of 24 percent, should the firm accept this project?