1. Chloe is considering an investment proposal that requires an initial investment of $88,700, has predicted cash inflows of $28,000 per year for four years and no salvage value. At a discount rate of 8 percent the projects net present value is: a. $ 4,036

b. $15,256

c. $23,300

d. $92,736

2. The internal rate of return of the investment proposal presented in Question 2 is: a. 8 percent

b. 10 percent

c. 12 percent

d. Less than 8 percent

3. The Salt Store is evaluating a capital expenditure proposal with the following predicted cash flows: Initial investment $(75,000) Operations, each year for four years 25,000 Salvage 8,000 At a discount rate of 10 percent the projects net present value is: a. $ 4,250

b. $ 1,214

c. $ 9,714

d. $15,178 4. The payback period of the investment proposal presented in Question 4 is: a. 0.123

b. 0.110

c. 0.223

d. 0.250