Problem 9-9 Calculating NPV and IRR [LO1, 5]

A project that provides annual cash flows of $18,300 for ten years costs $89,000 today.

(a) What is the NPV for the project if the required return is 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

(b) What isthe NPV for the project if the required return is 21 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

(c) 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 percent rounded to 2 decimal places, e.g., 32.16.)