A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0123 Cash Flow -$28,200 12,200 15,200 11,200

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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Just answer last question (what is npv for the project if the required rate of return is 26%)
A firm evaluates all of its projects by applying the NPV decision rule. A project under
consideration has the following cash flows:
Year
0123
Cash Flow
NPV
-$28,200
12,200
15,200
11,200
What is the NPV for the project if the required return is 10 percent? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
At a required return of 10 percent, should the firm accept this project?
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: Year 0123 Cash Flow NPV -$28,200 12,200 15,200 11,200 What is the NPV for the project if the required return is 10 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) At a required return of 10 percent, should the firm accept this project?
At a required return of 10 percent, should the firm accept this project?
Yes
No
What is the NPV for the project if the required return is 26 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
--
< Prev
5 of 8
W
N
‒‒‒
‒‒‒
N
*****
Transcribed Image Text:At a required return of 10 percent, should the firm accept this project? Yes No What is the NPV for the project if the required return is 26 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 -- < Prev 5 of 8 W N ‒‒‒ ‒‒‒ N *****
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