1.)

Calculate the NPV of a project with a discount rate of 2% and these cash flows: Period 0: -1000 Period 1: 748 Period 2: 346 Period 3: 252 Round to the nearest cent.

2.)

Calculate the payback period of a project with these cash flows: Period 0: -1000 Period 1: 751 Period 2: 425 Period 3: 250

3.)

Calculate the discounted payback period of a project with a discount rate of 6% and these cash flows: Period 0: -1000 Period 1: 564 Period 2: 103 Period 3: 1,059

4.) Compute the internal rate of return for the following cash flows: Period 0: -2000 Period 1: 1500 Period 2: 550 Period 3: 325

5.)

Compute the modified internal rate of return for the following cash flows using a discount rate of 8%: Period 0: -939 Period 1: 949 Period 2: 1,047 Period 3: -57

6.) Find the crossover rate of projects A and B Year Project A Project B 0 -1050 -575 1 800 375 2 450 300

7.)

In what circumstance is the profitability index helpful?

Group of answer choices

When the capital budget is less than the total initial costs of all positive NPV independent projects

When there are multiple IRRs

When the capital budget is less than the total initial costs of all possible projects (regardless of NPV)

When the capital budget is less than the NPV of all positive NPV independent projects

8.)

Find the profitability index of a project with the following cash flows using a discount rate of 3%: Period 0: -1000 Period 1: 762 Period 2: 368 Period 3: 234

9.)

Machinery costs $1 million today and $100,000 per year to operate. It lasts for 4 years. What is the equivalent annual annuity if the discount rate is 5%?