A firm evaluates all of its projects by applying the NPV decision rule. A proposed project is expected to have the following cash flows:

Year Cash Flow

0 $ (26,000)

1 $ 11,000

2 $ 14,000

3 $ 10,000

a) At a required return of 11 percent, what is the project's NPV? Should the firm accept this project?

b) At a required return of 24 percent, what is the project's NPV? Should the firm accept this project?