1) A project is projected to cost $450,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $190,000; Year 2 35,000; Year 3 - $150,000; Year 4 70,000, Year 5- 150,000. What is the projects NPV, given a 10% required rate of return? Round your answer to the nearest whole number.

2) reject or accept the project if the IRR is lower than the hurdle rate.

3) What is the IRR of the following set of cash flows? Year 0 - -$18,400 Year 1- $7,100 Year 2- 9,200 Year 3- 10,000 Round your answer to the nearest whole number Answer %

4) A project is projected to cost $3,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $450,000; Year 2 500,000; Year 3 - $750,000; Year 4 850,000; Year 5 900,000. What is the projects NPV, given a 10% required rate of return?

5) A project is projected to cost $175,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $48,000; Year 2 76,000; Year 3 - $49,000; Year 4 44,000. What is the projects Profitability Index if the required return is 8%? Answer

Based on your answers, what is the appropriate course of action to follow? Accept or reject