1. What is the net present value of a project with the following cash flows if the discount is 17%

year cash flow

0 -59,200

1 21,600

2 28,300

3 14,400

4 7,200

2.What is the net present value of the following set of cash flows at a discount rate of a) 7 percent? and b) 20 percent?

time period cash flow

0 -17,000

1 4,500

2 8,700

3 11,900 3.What is the payback period for a project with the following cash flows?

year cash flow

0 -58,700

1 19,600

2 22,300

3 14,800

4 11,600 4.What is the discounted payback period for a project with the following cash flows, if the interest rate is 5%?

year cash flow

0 -58,700

1 19,600

2 22,300

3 14,800

4 11,600 5.You are considering the following two mutually exclusive projects. The required return on each project is 14 percent. Which project should you accept and what is the best reason for that decision?

year project A project B 0 -46,000 -46,000

1 25,000 11,000

2 18,000 19,000

3 16,000 32,000