Question
A project that provides annual cash flows of $18,000 for ten years costs $86,000 today. What is the NPV for the project if the required
A project that provides annual cash flows of $18,000 for ten years costs $86,000 today. What is the NPV for the project if the required return is 9 percent? (Round your answer to 2 decimal places. (e.g., 32.16))
At a required return of 9 percent, should the firm accept this project?
What is the NPV for the project if the required return is 21 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) At a required return of 21 percent, should the firm accept this project?
At what discount rate would you be indifferent between accepting the project and rejecting it? (Round your answer to 2 decimal places. (e.g., 32.16))
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