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A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash Flow $27,500 11,500 14,500 10,500 1 2 3 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 11 percent, should the firm accept this project? Yes No What is the NPV for the project if the required return is 25 percent? (A negative answer should be indicated a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
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