A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows:
YearCash Flow0−$ 28,300112,300215,300311,300
What is the NPV for the project if the required return is 11 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
At a required return of 11 percent, should the firm accept this project?
multiple choice 1
Yes
No
What is the NPV for the project if the required return is 25 percent?
Note: 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.
At a required return of 25 percent, should the firm accept this project?
multiple choice 2
Yes
No