finance

User Generated

feg10

Business Finance

Question Description

A project that provides annual cash flows of $17,300 for nine years costs $79,000 today.

What is the NPV for the project if the required return is 8 percent? (Round your answer to 2 decimal places. (e.g., 32.16))


 NPV

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

Accept
Reject

What is the NPV for the project if the required return is 20 percent? (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))


 NPV

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

Accept
Reject

At what discount rate would you be indifferent between accepting the project and rejecting it? (Round your answer to 2 decimal places. (e.g., 32.16))


 Discount rate %  

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Explanation & Answer

vribeqmbe (181)
University of Maryland

Anonymous
I was having a hard time with this subject, and this was a great help.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Questions
Related Tags