1.) Compute the payback period for a project with the following cash flows. The companys discount rate is 12%, the tax rate is 40%, and coffee sells for $22/lb. Initial outlay = $400 Free Cash flows: Year 1 = 300; Year 2 = $90; Year 3 = $100

Round to the second decimal place. Type only numbers without any unit ($, %, etc.)

2.)

Initial Outlay $50 million

Year 1 $10 million

Year 2 $20 million

Year 3 $20 million

Year 4 $10 million

Year 5 $5 million

The required rate of return is 15%.

If the firm wants to make the profitability index equal to 1 for Project Alpha, the initial outlay has to be:

Round to the nearest hundredth million without a dollar sign. (i.e. if your answer is $12.34 million, then type 12.34 as your answer.)

3.)

Initial Outlay $50 million

Year 1 $10 million

Year 2 $20 million

Year 3 $20 million

Year 4 $10 million

Year 5 $5 million

The required rate of return is 15%. What is the NPV of the project? Round to the near hundredth million. Do not include any unit such as $, %, etc. (i.e. if your answer were -$1.23 million, type in -1.23 as your answer without $ and million) If there are multiple answers, then type NA.

4.) A firm is starting a new project that will cost $200,000. It is projected to last 5 years and to generate cash flows of $50,000, $70,000, $90,000, $50,000 and $30,000 from Years 1 through 5 respectively. If the discount rate is 10%, what is the NPV of this project? Round to the nearest penny. Do not include any unit such as $, %, etc. If there are multiple answers, then type NA.