Question: Problem 8-7 Calculating NPV and IRR [LO 3, 4] A project that will provde annual cash flows of $2,450 for nine years costs $10,100 today.
Problem 8-7 Calculating NPV and IRR [LO 3, 4] A project that will provde annual cash flows of $2,450 for nine years costs $10,100 today. a. At a required return of 9 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 25 percent, what is the NPV of the project? (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.) c. 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.) NPV b. NPV c. Discount rate
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