Question: Year Cash flow 0 .....-$34,000 1 ..... $16,000 2 ..... $18,000 3 ..... $15,000 For the cash flows in the chart, suppose the firm uses

Year Cash flow

0 .....-$34,000

1 ..... $16,000

2 ..... $18,000

3 ..... $15,000

For the cash flows in the chart, suppose the firm uses the NPV decision rule. At a required return of 11%, should the firm accept this project? What if the required return was 30%?

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