In: Finance
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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 | Cash Flow | ||
| 0 | –$ | 28,800 | |
| 1 | 12,800 | ||
| 2 | 15,800 | ||
| 3 | 11,800 | ||
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What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
| At a required return of 10 percent, should the firm accept this project? |
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What is the NPV for the project if the required return is 26 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
| At a required return of 26 percent, should the firm accept this project? |