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(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory...

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Accounting

(NPV with varying required rates of return) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $6,000,000 and would generate annual free cash inflows of $1,100,000 per year for 6 years. Calculate the project's NPV given:

a. A required rate of return of 9 percent

b. A required rate of return of 12 percent

c. A required rate of return of 14 percent

a. At 9 percent, the NPV is: $ [ Select ] ["-1,722,466", "-1,477,452", "-1,065,490", "-2,051,897"] . (Round to the nearest dollar and use thousands separators.)

b. At 12 percent, the NPV is: $ [ Select ] ["-1,722,466", "-2,051,897", "-1,065,490", "-1,477,452"] . (Round to the nearest dollar and use thousands separators.)

c. At 14 percent, the NPV is: $ [ Select ] ["-1,477,452", "-2,051,897", "-1,722,466", "-1,065,490"] . (Round to the nearest dollar and use thousands separators.)

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