# finance

Dec 11th, 2013
Anonymous
Category:
Accounting
Price: \$10 USD

Question description

 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 –\$ 28,000 1 12,000 2 15,000 3 11,000

 What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

 NPV \$

At a required return of 11 percent, should the firm accept this project?
 Yes No

 What is the NPV of the project if the required return is 25 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

 NPV \$

At a required return of 25 percent, should the firm accept this project?
 Yes No

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