Reference no: EM132557331
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.... -$ 28,400
1.... 12,400
2.... 15,400
3.... 11,400
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.)
2. At the required return of 12 percent, should the firm accept this project?
Yes or no?
3. What is the NPV for the project if the required return is 24 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.)
4. At the required return of 24 percent, should the firm accept this project?
Yes or no?
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