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
|