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A project that costs $3,200 to install will provide annual cash flows of $670 for the next 6 years. The firm accepts projects with payback
A project that costs $3,200 to install will provide annual cash flows of $670 for the next 6 years. The firm accepts projects with payback periods of less than 4 years. a. What is this project's payback period? (Round your answer to 3 decimal places.) b. Will the project be accepted? C-1. What is project NPV if the discount rate is 3%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) c-2. Should this project be pursued? d-1. What is project NPV if the discount rate is 9%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) d-2. Should this project be pursued? e. Will the firm's decision change as the discount rate changes? a. Years b. C-1. c2. Payback period Will the project be accepted? NPV of the project if the discount rate is 3% Should this project be pursued? NPV of the project if the discount rate is 9% Should this project be pursued? Will the firm's decision change as the discount rate changes? d-1. d-2. e
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