For the given cash flows, suppose the firm uses the NPV decision rule. |
Year | Cash Flow | |
0 | –$ | 158,000 |
1 | 58,000 | |
2 | 81,000 | |
3 | 65,000 | |
a. |
At a required return of 9 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.) |
b. | At a required return of 20 percent, what is the NPV of the project? (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.) |
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