Question

A project that provides annual cash flows of $11,700 for nine years costs $63,000 today. What...

A project that provides annual cash flows of $11,700 for nine years costs $63,000 today.

What is the NPV for the project if the required return is 8 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)


At a required return of 8 percent, should the firm accept this project?
  • Accept

  • Reject


What is the NPV for the project if the required return is 20 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.)
At a required return of 20 percent, should the firm accept this project?


  

  • Accept

  • Reject

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.)

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