Ans NPV @ 11% : $ 2198.30
Accept the project since NPV is positive
NPV @ 24% : - $4028.70
Reject the project since NPV is negative
Year | Project Cash Flows (i) | DF@ 11% | DF@ 11% (ii) | PV of Project ( (i) * (ii) ) | DF@ 24% (iii) | PV of Project ( (i) * (iii) ) |
0 | -34000 | 1 | 1 | (34,000.00) | 1 | (34,000.00) |
1 | 15000 | 1/((1+11%)^1) | 0.893 | 13,392.86 | 0.806 | 12,096.77 |
2 | 17000 | 1/((1+11%)^2) | 0.797 | 13,552.30 | 0.650 | 11,056.19 |
3 | 13000 | 1/((1+11%)^3) | 0.712 | 9,253.14 | 0.524 | 6,818.33 |
NPV | 2,198.30 | NPV | (4,028.70) |
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year O Cash Flow -$27,800 11,800 14,800 10,800 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.) NPV At a required return of 11 percent, should the firm accept this project? No Yes What is the NPV for...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$28,300 12,300 15,300 11,300 2 3 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.) NPV 3461.37 At a required return of 11 percent, should the firm accept this project? Yes No What is...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 -$28,300 12,300 15,300 11,300 What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e... 32.16.) NPV At a required return of 11 percent, should the firm accept this project? ONO Yes What is the NPV for...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 27,900 1 11,900 2 14,900 3 10,900 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.) NPV $ At a required return of 10 percent, should the firm accept...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow $27,300 0 11,300 14,300 10,300 1 2 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.) NPV At a required return of 10 percent, should the firm accept this project? Yes No What is the...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: YearCash Flow -$34,000 15,000 7,000 13,000 0 :3 What is the NPV of 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.) NPV What is the NPV of the project if the required return is 24 percent? (A negative answer should be indicated...
A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow O $28,700 12,700 15,700 11,700 What is the NPV for the project of the required return is 12 percent? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 3216.) NP At a required return of 12 percent, should the firm accept this project? NO Yes What is the NPV for...
Chapters 12, 13,9) Saved A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 28,400 1 12,400 2 15,400 11,400 What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) NPV 18.24 ces At a required return of 12 percent, should the firm accept this...
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 1 Cash Flow -$34,000 15,000 17,000 13,000 WN- If the required return is 14 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR I % Should the firm accept the project? Accept Reject
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 Cash Flow -$ 28,200 12,200 15,200 11,200 If the required return is 13 percent, what is the IRR for this project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Should the firm accept the project? Yes No