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1. A project has the following cash flows. Year 0: $50,000 Year 1: $20,000 Year 3: $10,000 Year 5: $70,000 Suppose that your required return

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1. A project has the following cash flows. Year 0: $50,000 Year 1: $20,000 Year 3: $10,000 Year 5: $70,000 Suppose that your required return is 5%. (Answer format: keep 2 digits after decimal point. e.g., 123.455 >123.46 ) - To compute the PV of cash flow at Year 5, how many times it is discounted (power of discounting)? - What is the NPV of the project? - What is the PI ? - List the formula of IRR. In the following, which one is correct? - AIRR=50000+(1+IRR)120000+(1+IRR)210000+(1+IRR)370000 - B0=50000+(1+IRR)120000+(1+IRR)210000+(1+IRR)370000 - CIRR=50000+(1+IRR)120000+(1+IRR)310000+(1+IRR)570000 - D0=50000+(1+IRR)120000+(1+IRR)310000+(1+IRR)570000

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