Indifferent between accepting the project and rejecting

Assignment Help Financial Management

Reference no: EM132015010

A project that provides annual cash flows of $2,400 for nine years costs $9,900 today.

At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV $

At a required return of 24 percent, what is the NPV of the project? (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.)

NPV $

At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Discount rate %

Reference no: EM132015010

Questions Cloud

What is a graph of the marginal cost curve : What is a graph of the marginal cost curve? How to derive the marginal revenue function for A? How to derive the optimal price and quantity for A?

The programs features and troubleshooting common problems : A gamepad is a handheld console with buttons and other input mechanisms you typically press with your thumbs to play a game.

Indicate the advantages and disadvantages of each strategy : Evaluate each of these strategies in terms of their appropriateness for your friend’s goal. Indicate the advantages and disadvantages of each strategy.

Positive correlation in ice cream consumption and crime rate : A study once found that, for any given year, there was a positive correlation between ice cream consumption and the crime rate (during the summer months).

Indifferent between accepting the project and rejecting : At a required return of 8 percent, what is the NPV of the project? At what discount rate would you be indifferent between accepting the project and rejecting it

What the recipient reports : To ?nance one last holiday for herself, she will extract a payment from the recipient, equal not to what the recipient reports

Why should we be cautious in drawing causal conclusions : With a correlational design, why should we be cautious in drawing causal conclusions? Suggestion: Thinking about your research topic for your proposal.

Optimal brightness of light for the university to provide : If there are no fixed costs, and the marginal cost of providing light is given by MC=12, then what is the optimal brightness of light for the university?

What is the project payback period if the initial cost : An investment project provides cash inflows of $1,350 per year for eight years. What is the project payback period if the initial cost is $4,250?

User Account

All Pages