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 -$28,000
1 12,000
2 15,000
3 11,000
What is the NPV of the project if the required return is 11% ? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $_______
At a required return of 11% should the firm accept this project? Yes No What is the NPV of the project if the required return is 25% ? (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ _______
At a required return of 25% should the firm accept this project? Yes No