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Question

A project that provides annual cash flows of $16,800 for nine years costs $74,000 today.

What is the NPV for the project if the required return is 8 percent? (Round your answer to 2 decimal places. (e.g., 32.16))

NPV $

At a required return of 8 percent, should the firm accept this project?

Accept
Reject

What is the NPV for the project if the required return is 20 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

NPV $

At a required return of 20 percent, should the firm accept this project?

Accept
Reject

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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