Reference no: EM132492533

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              -$27,100

1                11,100

2                14,100

3                10,100

Question 1: What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Question 2: At a required return of 12 percent, should the firm accept this project?

Yes

NO

Question 3: What is the NPV for the project if the required return is 24 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.)