A project that will provde annual cash flows of $2,350 for nine years costs $9,700 today.a. At a required return of 12 percent, what is the NPV of the project? (Do not roundintermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b. At a required return of 28 percent, what is the NPV of the project? (A negative answershould be indicated by a minus sign. Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)c. At what discount rate would you be indifferent between accepting the project andrejecting it? (Do not round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)а.NPVb.NPVC.Discount rate%

All cash flows are discounted with an appropriate discounting rate to arrive at their present value,…

a. At a required return of 12 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.) p. At a required return of 28 percent, what is the NPV of the project? (A negative answ 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.) а. NPV

a. At a required return of 12 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.) p. At a required return of 28 percent, what is the NPV of the project? (A negative answ 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.) а. NPV

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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