19.

A 3-year project has an upfront cost of $140,000. The project produces zero cash flows in the first three years and $425,000 in the fourth year. The discount rate used for this project is 8%. What is the estimated net present value for this project? (Please round your answer to whole dollars)

Group of answer choices

$172,388

$38,635

$253,519

$17,995

$$285,000

20.

You are considering an investment with the following cash flows. If the required rate of return for this investment is 10 percent, should you accept it based solely on the internal rate of return rule? Why or why not?

Year Cash Flow

0 -$12,000

1 $ 6,500

2 $ 9,000

3 -$ 1,500

Group of answer choices

no; because the IRR is less than the required return

no; because the IRR is a negative rate of return

yes; because the IRR is a positive rate of return

You can not apply the IRR rule in this case because there may be multiple IRRs.

yes; because the IRR exceeds the required return

22.

Which of the following statements regarding the discounted payback period is correct?

Group of answer choices

Does not require an arbitrary cutoff point

This method will yield a shorter payoff period than that the regular payoff method.

Incorporate the time value of money

Takes consideration of cash flows beyond the cutoff date