What is the NPV for the project if the required return is 25 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.) Answer is complete but not entirely correct. $ 3,358.40x NPV

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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Mc
Graw
Hill
2
A firm evaluates all of its projects by applying the NPV decision rule. A project under
consideration has the following cash flows:
Year
O
1
2
3
NPV
Cash Flow
What is the NPV for the project if the required return is 11 percent? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
@
-$27,800
2
11,800
14,800
10,800
At a required return of 11 percent, should the firm accept this project?
W
Answer is complete and correct.
$
2,739.51
No
Yes
# 3
20
E
$
4
000
R
%
5
#
< Prev
T
A
6
4 of 7
#
&
Y
7
Next >
* 00
8
U
Transcribed Image Text:Mc Graw Hill 2 A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year O 1 2 3 NPV Cash Flow What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) @ -$27,800 2 11,800 14,800 10,800 At a required return of 11 percent, should the firm accept this project? W Answer is complete and correct. $ 2,739.51 No Yes # 3 20 E $ 4 000 R % 5 # < Prev T A 6 4 of 7 # & Y 7 Next > * 00 8 U
8
ts
Mc
Graw
Hill
Q
A
At a required return of 11 percent, should the firm accept this project?
What is the NPV for the project if the required return is 25 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
No
Answer is complete but not entirely correct.
3,358.40x
Yes
@
At a required return of 25 percent, should the firm accept this project?
2
Yes
No
W
S
#3
80
E
D
$
R
%
5
F
< Prev
T
#
6
4 of 7
G
&
Y
7
Next >
H
8
U
J
Transcribed Image Text:8 ts Mc Graw Hill Q A At a required return of 11 percent, should the firm accept this project? What is the NPV for the project if the required return is 25 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 No Answer is complete but not entirely correct. 3,358.40x Yes @ At a required return of 25 percent, should the firm accept this project? 2 Yes No W S #3 80 E D $ R % 5 F < Prev T # 6 4 of 7 G & Y 7 Next > H 8 U J
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