Problem 8-7 Calculating NPV and IRR [LO 3, 4]

A project that provides annual cash flows of $2,850 for nine years costs $9,400 today.

Requirement 1:

At a required return of 12 percent, what is the NPV of the project?(Do not round intermediate calculations.Round your answer to 2 decimal places (e.g.,32.16).)

NPV

$

Requirement 2:

At a required return of 28 percent, what is the NPV of the project?(Do not round intermediate calculations.A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g.,32.16).)

NPV

$

Requirement 3:

At what discount rate would you be indifferent between accepting the project and rejecting it?(Do not round intermediate calculations.Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Discount rate

%