Question: Please answer the 24% question, as well as state whether it should be accepted by the firm. Thank you! A firm evaluates all of its
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash Flow $28,100 12,100 15,100 11,100 1 2 3 What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV At a required return of 12 percent, should the firm accept this project? No Yes What is the NPV for the project if the required return is 24 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.) NPV
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Net Present Value NPV Calculation To calculate the NPV we need to use the formula for NPV textNPV su... View full answer
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