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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 0 528,500 1 12,500 2 15,500 3 11,500 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.) Answer is not complete. NPV At a required return of 10 percent, should the firm accept this project? Yes What is the NPV for the project if the required return is 26 percent? (A negative answer 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
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