1. An investment project has the cash flow stream of $-3250, $80, $200, $75, and $90. The cost of capital is 12%. What is the discounted payback period?

2. An investment cost $10,000 with expected cash flows of $3,000 for 5 years. The discount rate is 15.2382%. The NPV is ______ and the IRR is ______ for the project.

3.

The Quorum Company has the following cost information on its new prospective project. Calculate the present value break-even point. Initial investment: $700 Fixed costs are $300 per year Variable costs: $3 per unit Depreciation: $100 per year Price: $8 per unit Discount rate: 12% Project life: 3 years Tax rate: 34%

4.A project will increase sales by $60,000 and cash expenses by $51,000. The project will cost $40,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 35%. What is the operating cash flow of the project using the tax shield approach?