1. The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows of $30,000 per year in Years 1 through 4, $35,000 in Year 5. This investment will cost the firm $100,000 today, and the firm's required rate of return is 10 percent. What is the NPV for this investment? $55,000 $13.720 $16.830 $32.680 1. Two projects being considered are mutually exclusive and have the following cash flows: Year Project A Project B 0 -$50,000 -$50,000 1 15,625 0 15.625 0 15,625 15,625 15,625 99.500 If the required rate of return on these projects is 10 percent, which would be chosen and why? 0 0 Project B because of higher IRR Project A because of higher IRR Project B because of higher NPV: Project A because of higher NPU 1. Net present value is preferred to internal rate of return for capital budgeting decisions because the net present value allows you to compare mutually exclusive projects, the internal rate of return for a project is different for each firm. the internal rate of return does not allow you to determine if the project is acceptable. the net present value is the only method that allows you to determine which independerit project is acceptable AVGU 1 Union Atlantic Corporation, which has a required rate of return equal to 14 percent, is evaluating a capital budgeting project that has the following characteristics Year Cash Flows 0 $(170,000) 1 60,750 2 60.750 3 60.750 60,750 4 Determined the project's not present value $7008 103,478 Need more information $73.000