$1."$An auto$-$parts company is deciding whether to sponsor a racing team for a cost of $$100000.$ The sponsorship would last for $3$ years and is expected to increase cash flows by $$50000$ per year. If the discount rate is $7\mathrm{.}5\%,$ what will be the change in the value of the company if it chooses to go ahead with the sponsorship? Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

$2.$"The owners of a chain of fast$-$food restaurants spend $$1000000$ installing donut makers in all their restaurants. This is expected to increase cash flows by $$300000$ per year for the next $4$ years. The discount rate is $9\%.$ What is the net present value of installing the donut makers?"" Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

$3.$ Consider a project with the cash flow as depicted in Table $1$: The discount rate for this project is $5\%.$ The net present value $($NPV$)$ is $\_\_\_\_\_\_\_\_.""$ Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

Year Cash Flow

$0-90,000$

$150,000$

$225,000$

$325,000$

$410,000$

$4.$"Consider the two projects depicted in Table $2$: The net present value $($NPV$)$ of project A is $\_\_\_\_\_\_\_\_.$ Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

Project Year $0$ Year $1$ Year $2$ Year $3$ Year $4$ Discount

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate

A $-6001004005000\mathrm{.}05$

B $-4501501501501500\mathrm{.}075$

$5.$Consider the two projects depicted in Table $2$: The net present value $($NPV$)$ of project B is $\_\_\_\_\_\_\_\_.$ Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

Project Year $0$ Year $1$ Year $2$ Year $3$ Year $4$ Discount

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate

A $-6001004005000\mathrm{.}05$

B $-4501501501501500\mathrm{.}075$

$6.$"Consider the cash flow of the two projects depicted in Table $3.$ If WiseGuy Inc. uses payback period rule to choose projects, which of the projects $($Project A or Project B$)$ will rank highest? $---"$

Project A Project B

Time $0-7,000-4,000$

Time $18,0003,500$

Time $21,00012,000$

Time $31,0009,000$

a$)$Project A$.$

b$)$Project B$.$

c$)$Project A and Project B have the same ranking.

d$)$Cannot calculate a payback period without a discount rate.

$7.$Consider the cash flow of the two projects depicted in Table $3.$ If WiseGuy Inc. uses IRR rule to choose projects, which of the projects $($Project A or Project B$)$ will rank highest? $---"$

Project Year $0$ Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

A $-15000100005000500050005000$

B $-1550080007000700070007000$

C $-18000200001000100010001000$

Project A$.$

Project B$.$

Project A and Project B have the same ranking.

Cannot calculate a payback period without a discount rate.

$8.$ Consider the cash flow of the three projects depicted in Table $4.$ The cost of capital is $15\%.$ The net present value $($NPV$)$ of project A is $\_\_\_\_\_\_\_\_.$ Note: Express your answers in strictly numerical terms. For example, if the answer is $$500,$ write enter $500$ as an answer."

Project Year $0$ Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

A $-15000100005000500050005000$

B $-1550080007000700070007000$

C $-18000200001000100010001000$

"Consider the cash flow of the three projects depicted in Table $4.$ The cost of capital is $15\%.$ If an investor decided to take projects with a payback period of $1$ year or less, which of these projects would he take? $---"$

Project Year $0$ Year $1$ Year $2$ Year $3$ Year $4$ Year $5$

Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow

A $-15000100005000500050005000$

B $-1550080007000700070007000$

C $-18000200001000100010001000$

Investment A$.$

Investment B$.$

Investment C$.$

none of these investments.