A project that provides annual cash flows of $17,500 for eight years costs $81,000 today. What is the NPV if the required return is 7%? Should the firm accept this project?

NPV $_____ Accept ___ or Reject ___

What is the NPV for the project if the required return is 19%? Should the firm accept this project?

NPV $_____ Accept ___ or Reject ___

At what discount rate would you be indifferent between accepting the project or rejecting it?

Discount rate _____%