1. A project costs $5,000 and is expected to last 2 years, producing cash income of $4,000 in Year 1 and $6,000 in Year If the required rate of return in 8%, what is the net present value of the project (NPV)?

a.-$2,418.92

b.$1,756.43

c.$3,847.74

d.$4,897.62

2.A project has the following cash flows:

Cash flow with project = $2,500,0000

Cash flow without project = $2,000,000

What is the Incremental cash flow?

a.-$500,000

b.$500,000

c.$2,000,000

d.$4,500,000

3.If the nominal interest rate is 10% and the inflation rate is 6$, what is the real interest rate? a.1.84% b. 2.89% c.3.77% d.4.56%.

4.Use the following data to calculate the operating cash flow of the company.

Revenue: $10,000,000

Expenses: $7,000,000

Taxes: $1,200,000

a.$1,800,000 b. $2,000,000 c.$2,800,000 D. $3,000,000

5.Total cash flow includes:

a.cash flows from capital investments b. operating cash flows c. cash flows from changes in working capital D. all of the above