Consider this project with an internal rate of return of 20.6%. The following are the cash flows of the project.
Year Cash Flow 0 +$220 1 â145 2 â145
What is project NPV if the discount rate is 14%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)
NPV $
Should you accept the project? Yes No
| Consider this project with an internal rate of return of 20.6%. The following are the cash flows of the project. |
| Year | Cash Flow | |||||
| 0 | +$220 | |||||
| 1 | â145 | |||||
| 2 | â145 | |||||
| What is project NPV if the discount rate is 14%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) |
| NPV | $ |
| Should you accept the project? | ||||
|
Related questions
| 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 | â$ | 28,600 | |
| 1 | 12,600 | ||
| 2 | 15,600 | ||
| 3 | 11,600 | ||
| What is the NPV for the project if the required return is 11 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
| At a required return of 11 percent, should the firm accept this project? | ||||
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| What is the NPV for the project if the required return is 25 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
| At a required return of 25 percent, should the firm accept this project? | ||||
|
| A project that provides annual cash flows of $16,700 for ten years costs $73,000 today. |
| What is the NPV for the project if the required return is 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
| At a required return of 9 percent, should the firm accept this project? | ||||
|
| What is the NPV for the project if the required return is 21 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
| At a required return of 21 percent, should the firm accept this project? | ||||
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| At what discount rate would you be indifferent between accepting the project and rejecting it? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Discount rate | % |
