Calculating NPV decision rule

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Reference no: EM131318874

Calculating NPV

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 -27,400

1 11,400

2 14,400

3 10,400

What is the NPV for the project if the required return is 12 percent?

At a required return of 12 percent, should the firm accept this project?

What is the NPV for the project if the required return is 24 percent?

At a required return of 24 percent, should the firm accept this project?

Reference no: EM131318874

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