**Net Present Value and Project Acceptance Decision**For the following project decisions, evaluate acceptance based on the given appropriate discount rates:**b. Should you accept the project if the appropriate discount rate is 10 percent?**- Options: - Accept - Reject**c. Should you accept the project if the appropriate discount rate is 20 percent?**- Options: - Accept - Reject**d1. Calculate the NPV of the project if the appropriate discount rate is 10 percent.** - Use the below cash flows: - Cash Flow Year 0: -$152,300 - Cash Flow Year 1: $65,300 - Cash Flow Year 2: $78,300 - Cash Flow Year 3: $41,300- Note: Utilize a financial calculator or Excel for assistance. Perform intermediary calculations where necessary and provide your answers rounded to two decimal places (e.g., 3.25%).**Data Input Table for NPV Calculation**- Cash Flow Year 0- Cash Flow Year 1- Cash Flow Year 2- Cash Flow Year 3**d2. Calculate the NPV of the project if the appropriate discount rate is 20 percent.** - Follow the same process as in part d1, adjusting only the discount rate to 20 percent. **Project Analysis Using Cash Flows**In this exercise, you are tasked with analyzing a proposed project based on the cash flows provided. Consider the following information:**Cash Flows** - Year 0: $9,800 - Year 1: -$4,900 - Year 2: -$3,250 - Year 3: -$2,900 **Questions to Consider:**1. **What is the IRR (Internal Rate of Return) of this project?** - **Calculation Note:** When calculating the IRR, avoid rounding intermediate calculations. Your final answer should be expressed as a percentage, rounded to two decimal places (e.g., 9.32%).2. **Decision Criteria Based on Discount Rate:** - **a.** If the appropriate discount rate is 10 percent, should you accept this project? - Options: Reject or Accept - **b.** If the appropriate discount rate is 20 percent, should you accept this project? - Options: Reject or AcceptUse the information above to determine whether the project should be accepted based on the given IRRs and discount rates.

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Homework Suppose you are offered a project with the following cash flows: Cash Flows $9,800 -4,300 -3,300 -2,500 -2,300 Year 0 1 2 3 4 a. What is the IRR of this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR b. If the appropriate discount rate is 10 percent, should you accept this project? O Reject O Accept % the appropriate discount rate is 20 percent, should you accept this project? Accept < Prev 4 of 11

Homework Suppose you are offered a project with the following cash flows: Cash Flows $9,800 -4,300 -3,300 -2,500 -2,300 Year 0 1 2 3 4 a. What is the IRR of this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR b. If the appropriate discount rate is 10 percent, should you accept this project? O Reject O Accept % the appropriate discount rate is 20 percent, should you accept this project? Accept < Prev 4 of 11

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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