16) What is the internal rate of return (IRR) of an investment that requires an initial investment of $9000 today and pays $12,420 in one year's time? A) 41% B) 42% C) 35% D) 38% 17) Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 N/A - 73 40 I 40 40 40 Discount Rate 0.14 0.14 The payback period for project B is closest to A) 1.5 years B) 1.6 years C) 2.0 years D) 1.8 years 18) A delivery service is buying 600 tires for its fleet of vehicles. One supplier offers to supply the tires for $80 per tire, payable in one year. Another supplier will supply the tires for $15,000 down today, then $50 per tire, payable in one year. What is the difference in PV between the first and the second offer. assuming interest rates are 8.8%? A) $618 B) -$2316 C) $2316 D) S1544 19) A company buys a color printer that will cost $20,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 9%? A) -$5078 B) -S4513 C) -53949 D) -S5642