f* B D D E F Checked Capital Budgeting NPV 1 N 3 Year 4 5 6 ANO Cash Flows -5,946 1,565 1,658 1,733 2,104 1 2 3 4 8 9 4.7% 10 Currently, the investor's required rate of return 11 12 Please compute the project's NPV (hint: it is positive). 13 14 What if interest rates in the broad economy went up, 15 and also the firm became riskier? Investors would 16 require a higher rate of retum. 17 1. Suppose the required rate increases 2%. How much would the NPV drop? 20 A Between 200 and 270 21 B Between 270 and 280 22 C Between 280 and 290 D Between 290 and 300 18 19 23 24 25