For the given cash flows, suppose the firm uses the NPV decision rule.At a requi

Question

For the given cash flows, suppose the firm uses the NPV decision rule.At a required return of 9 percent, what is the NPV of the project?

For the given cash fows, suppose the fim uses the NPV decision rue For the given cash flows, suppose the firm uses the NPV decision rule Year Cash Flow 161,000 55,000 84,000 68,000 Requirement 1 At a required return of 9 percent, what is the NPV of the project? (Do not round intermediate r answer to 2 NPV Requirement 2: At a required return of 21 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).) NPV

Explanation / Answer

NPV = -161000+55000/1.09)+(84000/1.09^2)+(68000/1.09^3)

NPV = $12668.30

NPV @21% = -$19788.10

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