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At a required return of 12 percent, what is the NPV of the project? ( Do not rou

ID: 2628615 • Letter: A

Question

At a required return of 12 percent, what is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

At a required return of 28 percent, what is the NPV of the project? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).)

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 percentage rounded to 2 decimal places (e.g., 32.16).)

A project that provides annual cash flows of $2,850 for nine years costs $9,400 today.

Explanation / Answer

NPV (at Re = 12%) = 9400

NPV (at Re = 12%) = 9400

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