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A firm evaluates all of its projects by applying the NPV decision rule. A project under...

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

  

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?
  • Yes

  • No

  

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?

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