1.A project costs $12,000 and has a discount rate of 14.5%. Calculate the profitability index of the project that has cash flows of $2,500 per year in years 1 and 2, and $4000 per year in years 3, 4, and 5.

2.What is the weighted average cost of capital after taxes for Moss Diet Centers if the target weights are 25% equity and 75% debt, and the costs of equity and after-tax debt are 15% and 12%, respectively? Assume the relevant tax rate is 20%.

3.A project requires a current expenditure of $330 and expects to generate $100 cash inflows at the end of each of the next 5 years. What conclusion can be drawn from examining an NPV profile for this project?