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What discount rate indifferent between accept and reject

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Reference no: EM132492563

A project that provides annual cash flows of $16,800 for nine years costs $74,000 today.

Question 1: What is the NPV for the project if the required return is 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Question 2: At a required return of 8 percent, should the firm accept this project?

Question 3: Accept What is the NPV for the project if the required return is 20 percent? (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.)

Question 4: At a required return of 20 percent, should the firm accept this project?

Question 5: At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132492563

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