1- A project generates the following cash flows;

Beginning of years:

1 ($100,000) (contractors fees)

2 ($200,000) (contractors fees)

3 ($200,000) (contractors fees)

End of Year 3 : $890,000 (sales)

Calculate the NPV of the project using a risk discount rate of 20% per year

2- Assume that a company invests cash of $1,000,000 in new project. The cash savings from the new project is expected to be $100,000 per year for 10 years. What is the The payback period?

Select one:

a. 9 years

b. 13 years

c. 11 years

d. 10 years

3- NY company wants to expand its business and so it is willing to invest $10,00,000. The investment is said to bring an inflow of $ 100,000 in first year, 250,000 in the second year, 350,000 in third year, 265,000 in fourth year and 415,000 in fifth year.Assuming the discount rate to be 9%.Calculate NPV ?