A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows:Year Cash Flow01123-$42,00019,00022,00018,000What is the NPV of the project if the required return is 11%? (Do not round intermediate calculations. Round the final answer to 2decimal places. Omit $ sign in your response.)NPV$At a required return of 11% should the firm accept this project?YesNoWhat is the NPV of the project if the required return is 24%? (Negative answers should be indicated by a minus sign. Do not roundintermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)NPVAt a required return of 24% should the firm accept this project?YesNo

The problem involves Net Present Value NPV or Net Present Value is the difference in the total…

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Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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