| A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: |
| Year | Cash Flow | |
| 0 | –$ | 28,000 |
| 1 | 12,000 | |
| 2 | 15,000 | |
| 3 | 11,000 |
| What is the NPV of the project if the required return is 11 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
| At a required return of 11 percent, should the firm accept this project? |
| YesNo |
| What is the NPV of the project if the required return is 25 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
| At a required return of 25 percent, should the firm accept this project? |
| YesNo |