A project that provides annual cash flows of $16,300 for eight years costs $69,000 today. What is the NPV for the project if the required return is 7 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) NPV
A project that provides annual cash flows of $16,300 for eight years costs $69,000 today. What is the NPV for the project if the required return is 7 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) NPV
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 project that provides annual cash flows of $16,300 for eight years costs
$69,000 today.
What is the NPV for the project if the required return is 7 percent? (Do not
round intermediate calculations. Round your answer to 2 decimal places,
e.g., 32.16.)
NPV
At a required return of 7 percent, should the firm accept this project?
О Аccсept
O Reject
What is the NPV for the project if the required return is 19 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 19 percent, should the firm accept this project?
О Ассept
O Reject
At what discount rate would you be indifferent between accepting the project
and rejecting it? (Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g., 32.16.)
Discount rate
%
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