(NPV

with varying required rates of

return)

Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of

$6,000,000

and would generate annual free cash inflows of

$1,100,000

per year for

8

years. Calculate the project's NPV given:

a. A required rate of return of

9

percent?

b. A required rate of return of

11

percent?

c. A required rate of return of

15

percent?

d. A required rate of return of

17

percent?