A firm evaluates all of its projects by using the NPV decision rule.

A firm evaluates all of its projects by using the NPV decision rule.

 

Year                 Cash Flow
0 –$31,000
1 22,000
2 14,000
3 10,000

 

a. At a required return of 20 percent, what is the NPV for this project?

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

$2843

 

b. At a required return of 39 percent, what is the NPV for this project?

-$4203