Question: only answer last question involving discount rate A project that provides annual cash flows of $18,200 for nine years costs $88,000 today. What is the

A project that provides annual cash flows of $18,200 for nine years costs $88,000 today. What is the NPV for the project if the required return is 8 percent? (Do not round intermediate calculations and 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? (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 what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
