A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Cash Flow Year 528,100 12,100 15,100 11,100 1 2 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? O Yes O No 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 At a required return of 24 percent, should the firm accept this project? O Yes O No
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Cash Flow Year 528,100 12,100 15,100 11,100 1 2 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? O Yes O No 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 At a required return of 24 percent, should the firm accept this project? O Yes O No
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A firm evaluates all of its projects by applying the NPV decision rule. A project
under consideration has the following cash flows:
Cash
Flow
Year
O 528.100
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?
O Yes
O No
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
At a required return of 24 percent, should the firm accept this project?
O Yes
O No
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