Question
1. A proposed project has an initial cost of $69,500 and is expected to produce cash inflows of $32,200, $50,500, and $43,000 over the next
1.
A proposed project has an initial cost of $69,500 and is expected to produce cash inflows of $32,200, $50,500, and $43,000 over the next 3 years, respectively. What is the net present value of this project at a discount rate of 15.8 percent? |
$23,657.30
$21,763.60
$24,050.28
$24,933.59
2.
A project has an initial cost of $19,000 and cash inflows of $4,200, $4,600, $11,600, and $5,750 over the next 4 years, respectively. What is the payback period? |
4.22 years
2.88 years
3.22 years
1.88 years
3.
A project has an initial cash outflow of $1,010 and cash inflows of $290 per year for 4 years. What is the discounted payback period at a discount rate of 9.2 percent? |
Never
3.80 years
3.49 years
2.87 years
4.
A project has an initial cost of $56,700 and is expected to produce cash inflows of $19,700, $27,800, and $45,100 over the next 3 years, respectively. What is the projects internal rate of return? |
26.56 percent
17.17 percent
19.23 percent
24.94 percent
5.
Nelsons Industrial Supply is considering a project that has projected cash inflows of $5,800 a year for 3 years. The initial cost of the project is $15,000 and the required return is 13.00 percent. Should this project be accepted based on the profitability index criterion? Why or why not? |
no; because the PI is .91
no; because the PI is 1.51
yes; because the PI is 1.51
yes; because the PI is .91
Please answer all the questions. Thank you.
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