1. Project X has an initial cost of $38,142, and its expected net cash inflows are $8,250 per year for 9 years. The firm has a WACC of 11 percent, and Project Xs risk would be similar to that of the firms existing assets. Calculate the net present value (NPV) of Project X.

a. $28,749.89

b. $7,538.64

c. $36,108.00

d. $9,115.84

e. $45,680.64 2. Project X has an initial cost of $31,182, and its expected net cash inflows are $8,500 per year for 8 years. The firm has a WACC of 9 percent, and Project Xs risk would be similar to that of the firms existing assets. Calculate Project Xs internal rate of return (IRR). a. 17.22%

b. 21.53%

c. 118.07%

d. 9.00%

e. 10.24%

3. Project K has an initial cost of $61,995, and its expected net cash inflows are $18,000 per year for 6 years. The firm has a WACC of 12 percent, and Project Ks risk would be similar to that of the firms existing assets. What is Project Ks payback period?

a. 3.64 years

b. 3.44 years

c. 4.00 years

d. 3.12 years

e. 3.00 years