Question: Problem 8-7 Calculating NPV and IRR (LO 3, 4] A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a.

 Problem 8-7 Calculating NPV and IRR (LO 3, 4] A project

Problem 8-7 Calculating NPV and IRR (LO 3, 4] A project that provides annual cash flows of $2,620 for eight years costs $9,430 today. a. At a required return of 8 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 24 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.) |a. NPV b. NPV C. Discount rate %

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