1.An investment project provides cash inflows of $1,025 per year for eight years.

a.What is the project payback period if the initial cost is $3,600?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b.What is the project payback period if the initial cost is $4,650?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

c.What is the project payback period if the initial cost is $9,200?(Enter 0 if the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

2.A firm evaluates all of its projects by applying the IRR rule.

Year. Cash Flow

0. -$147,000

1 69,000

2 70,000

3 54,000

What is the project's IRR?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

If the required return is 16%, should the firm accept the project?

3.For the given cash flows, suppose the firm uses the NPV decision rule.

Year. Cash Flow

0. -$160,000

1 56,000

2 83,000

3 67,000

a.At a required return of 9 percent, what is the NPV of the project?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.At a required return of 18 percent, what is the NPV of the project?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)