Question
11. Which of the following statements about project Y is least accurate? * A. The discounted payback period is 3 years. B. The IRR of
11. Which of the following statements about project Y is least accurate? *
A. The discounted payback period is 3 years.
B. The IRR of the project is 19.86%; accept the project.
C. The NPV of the project is +$3,024; accept the project.
D. B and C
E. None of the above.
12. The MIRR for project Y is: *
A. 16.19%
B. 15.70%
C. -2.16%
D. 19.85%
E. None of the above
13. The payback period for project Z is: *
A. 3 years
B. 1.33 years
C. 2.67 years
D. 2 years
E. None of the above
14. The NPV for project Z is: *
A. +$3,023.88
B. -2,780.12
C. $2,780.12
D. +2,780.12
E. None of the above
An analyst has gathered the following data about two projects, each with a 12% cost of capital: Initial cost Life Cash inflows Project Y $15,000 5 years $5,000/year Project Z $20,000 4 years $7,500/yearStep by Step Solution
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