A project that will provide annual cash flows of $5,000 a year for five years and costs $18,000 today.

Show all work:

a) At a required rate of return of 10% what is the Net Present Value (NPV) of the project?

b) At a required rate of return of 15% what is the Net Present Value (NPV) of the project?

c) At what discount rate would you be indifferent between accepting the project and rejecting the project?