How the firm uses the npv decision rule


Show Work and Forumulas needed to calculate NPV:  

Calculating NPV:  For the cash flows in the previous problem (noted above), suppose the firm uses the NPV decision rule.  At a required return of 11 percent, should the firm accept this project?  What if the required return is 25%?  

                    
  

Year

  
  

Cash Flow

  
  

0

  
  

-$28,000

  
  

1

  
  

12000

  
  

2

  
  

15000

  
  

3

  
  

11000

  

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Accounting Basics: How the firm uses the npv decision rule
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