What is the project NPV At a required return percent

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Calculating NPV

A firm evaluates all of its projects by applying the NPV decision rule. A proposed project is expected to have the following cash flows:

Year        Cash Flow

0            $ (26,000)

1          $ 11,000

2           $ 14,000

3           $ 10,000

Question a) At a required return of 11 percent, what is the project's NPV? Should the firm accept this project?

Question b) At a required return of 24 percent, what is the project's NPV? Should the firm accept this project?

Reference no: EM132488057

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