A firm evaluates all of its projects by applying the NPV dec

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 –$ 28,800 1 12,800 2 15,800 3 11,800 What is the NPV for the project if the required return is 26 percent?

12,800/1.26 + 15,800/1.26^2 + 11,800/1.26^3 = 10158.73+9952.13+5898.89

26009.75 - 28,800 =-2790.25(NPV)

Since NPV is negative you Reject project