Calculating NPV. A firm evaluates all of its projects by using the NPV decision rule.
Year Cash Flow
0 –$28,000
1 22,000
2 14,000
3 9,000
Required: (a) At a required return of 30 percent, what is the NPV for this project?
(b) At a required return of 37 percent, what is the NPV for this project?