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A project that costs $2,500 to install will provide annual cash flows of $600 for the next 6 years. The firm accepts projects with payback
A project that costs $2,500 to install will provide annual cash flows of $600 for the next 6 years. The firm accepts projects with payback periods of less than 5 years a-1. What is this project's payback period? (Round your answer to 3 decimal places.) Payback period years a-2. Will the project be accepted? O Yes 0 b-1. What is project NPV if the discount rate is 2%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b-2. Should this project be pursued? O Yes 0 b-3. What is project NPV if the discount rate is 12%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV b-4. Should this project be pursued? O Yes 0 b-5. Will the firm's decision change as the discount rate changes? O Yes 0
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