p 10-4

A firm evaluates all of its projects by using the NPV decision rule. Year 0 1 2 3 Cash Flow -$ 28,000 18,000 16,000 8,000 a. At a required return of 28 percent, what is the NPV for this project? NPV b. At a required return of 39 percent, what is the NPV for this project? NPV