Question
16) A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $400,000; Year 2 500,000;
16) A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $400,000; Year 2 500,000; Year 3 - $650,000; Year 4 750,000; Year 5 800,000. What is the projects NPV, given a 10% required rate of return?
Select one:
a.$0
b.$100,000
c.$185,000
d.$240,060
e.$274,211
17) A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflow of $550,000 for next 7 years. What is the projects discounted payback, given a 10% required rate of return?
Select one:
a.4.75 years
b.4.82 years
c.4.92 years
d.5.0 years
e.Discounted payback does not occur
18) A project is projected to cost $450,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $290,000; Year 2 135,000; Year 3 - $150,000; Year 4 70,000. What is the projects discounted payback period, given a 10% required rate of return?
Select one:
a.2.66 years
b.4.82 years
c.4.92 years
d.5.0 years
e.Discounted payback does not occur
19) Difference between market value and cost of the investment is
Select one:
a.Payback Period
b.Discounted Payback Period
c.Internal Rate of return
d.Net Present Value
e.Future Value
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