Calculating NPV [LO 4] For the given cash flows, suppose the firm uses the NPV d

Question

Calculating NPV [LO 4] For the given cash flows, suppose the firm uses the NPV decision rule. Requirement 1: At a required return of 11 percent, what is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g.. 32.16).) Requirement 2: At a required return of 22 percent, what is the NPV of the project? (Do not round intermediate calculations. A negative amount should he indicated by a minus sign. Round your answer to 2 decimal places (e.g.. 32.16).)

Explanation / Answer

REQUIREMENT 1

REQUIREMENT 2

YEAR CASH FLOW DISCOUNTING FACTOR @11% DISCOUNTED CASH FLOW 0 ($146000) 1.0000 ($146000) 1 $70000 0.901 $63070 2 $69000 0.812 $56028 3 $53000 0.731 $38743 NPV $11841

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