1 What is the net present value of a project with an initial cost of $36,900 and cash inflows of $13,400, $21,600, and $10,000 for Years 1 to 3, respectively? The discount rate is 13 percent.

$204.36

$797.22

$287.22

$1,350.49

$1,195.12

2- What is the net present value of a project that has an initial cash outflow of $7,670 and cash inflows of $1,280 in Year 1, $6,980 in Year 3, and $2,750 in Year 4? The discount rate is 12.5 percent.

$249.65

$68.20

$86.87

$270.16

$371.02

3 A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300. What is the net present value of this project if the required rate of return is 11.3 percent?

$2,474.76

$2,903.19

$3,011.40

$1,980.02

$935.56

4 A proposed project costs $300 and has cash flows of $80, $200, $75, and $90 for Years 1 to 4, respectively. Because of its high risk, the project has been assigned a discount rate of 16 percent. In dollars, how much will this project return in todays dollars for every $1 invested?

$1.01

$1.05

$.97

$.99

$1.03

5- Lee's Furniture just purchased $24,000 of fixed assets that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year?

$4,800

$2,507

$4,608

$2,304

$2,765

6- Al's Sport Store has sales of $2,900, costs of goods sold of $2,000, inventory of $512, and accounts receivable of $440. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?

64.4

92.2

119.7

93.4

117.6