Question: For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0 $ 153,000 1 78,000 2 67,000 3 49,000

For the given cash flows, suppose the firm uses the NPV decision rule.

Year Cash Flow
0 $ 153,000
1 78,000
2 67,000
3 49,000

Requirement 1:

At a required return of 9 percent, what is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

NPV $

Requirement 2:

At a required return of 21 percent, what is the NPV of the project? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

NPV $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!