1. Transocean Ltd has a project with initial investment requiring $-115,000 and the following cash flows will be generated for the following 5 years at the end of each year because of the project: $28,750; $158,000; $134,000; $188,000; and $110,000 respectively. If the required rate of return is 0.1, find the payback period (PB) of the project.

a. none of the answers is correct

b. 1.13 years

c. 1.89 years

d. 1.55 years

e. 0.95 years

2. Roper Industries Inc has a project with initial investment requiring $-90,000 and the following cash flows will be generated because of the project: $22,500; $58,000; $51,000; and $57,000 respectively at the end of each year for the next four years. If the required rate of return is 0.19, find the Profitability Index (PI) of the project.

a. 2.34

b. 1.32

c. none of the answers is correct

d. 0.96

e. 1.83

3. Roper Industries Inc has a project with initial investment requiring $-90,000 and the following cash flows will be generated because of the project: $22,500; $58,000; $51,000; and $57,000 respectively at the end of each year for the next four years. If the required rate of return is 0.19, find the Profitability Index (PI) of the project.

a. 2.34

b. 1.32

c. none of the answers is correct

d. 0.96

e. 1.83