1. Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 8 percent.

Year 0: ($700,000)

Year 1: $400,000

Year 2: $400,000

Year 3: $400,000

2. What is the projects net present value?

A. $186,897

B. $197,619

C. $208,225

D. $324,538

E. $330,839

Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 9 percent. Year 0: ($850,000) Year 1: $400,000 Year 2: $400,000 Year 3: $400,000 What is the projects internal rate of return?

A. 18.5 percent

B. 19.4 percent

C. 20.6 percent

D. 23.8 percent

E. 24.4 percent

3. Assume a project has the following expected cash flows: Year 0: ($350,000) Year 1: $125,000 Year 2: $130,000 Year 3: $170,000 Year 3: $200,000 What is the projects payback (payback period)?

A. 2.20 years

B. 2.45 years

C. 2.54 years

D. 2.62 years

E. 3.05 years