A firm evaluates all of its projects by using the npv


A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 –$27,000 1 21,000 2 13,000 3 9,000 Required: (a) At a required return of 27 percent, what is the NPV for this project? (b) At a required return of 40 percent, what is the NPV for this project?

A project that provides annual cash flows of $2,700 for 7 years costs $10,500 today.

Required:

(a) If the required return is 8 percent, what is the NPV for this project?

$3,557.2$3,912.92$4,268.64$4,695.5$3,201.48

(b) Determine the IRR for this project.

17.3%19.03%20.76%22.83%15.57%

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Financial Management: A firm evaluates all of its projects by using the npv
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