Problem:
A project that provides annual cash flows of $18,300 for ten years costs $89,000 today. What is the NPV for the project if the required return is 9 percent? NPV $ At a required return of 9 percent, should the firm accept this project? Accept Reject What is the NPV for the project if the required return is 21 percent?NPV $ At a required return of 21 percent, should the firm accept this project? Accept Reject At what discount rate would you be indifferent between accepting the project and rejecting it?
Note: Please show basic calculation