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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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