The CFO of ADT Machines is considering a new project with the following cash flows [in
$
millions]: \table[[year,cash flow],[0,-29],[
1-5
,5],[
6-11
,4],[12,8]] The best approach to be used in analyzing this project when value added to the firm is important for discussion with the Board is
◻
At a required return of
12%
, the NPV of the project is
$
◻
At a discount rate of
◻
%
, the CFO will be indifferent between accepting and rejecting the project.