Clipboard Font Alignment A1 Ja Checked B E GHIJKLMNCFCF 6. Capital Budgeting (NPV) Nooo AWNIO 8 9 Year Cash Flows 10 -5.580 11 1.502 12 2 1.619 13 3 1.791 14 4 2,023 15 16 17 Currently, the investor's required rate of return 5.9% 18 19 Please compute the project's NPV (hint: it is positive). 20 21 What if interest rates in the broad economy went up. 22 and also the firm became riskiere Investors would 23 require a higher rate of return, 24 25 1. Suppose the required rate increases 2%. 26 How much would the NPV drop 27 A Between 200 and 270 28 B Between 270 and 280 29 C Between 280 and 290 30 D Between 290 and 300 31 32 33 34 35 2 Should the firm still accept the projecte 36 A Yes 371B No 38 39 40