Question
1.Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do
1.Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: $1,700 $490 $620 $660 $740 $240 Should the project be accepted or rejected? accepted rejected
2.
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project C | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow: | $3,000 | $1,280 | $1,080 | $1,120 | $700 | $500 |
Should the project be accepted or rejected?
accepted
rejected
3.
Compute the IRR static for Project E. The appropriate cost of capital is 9 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Project E | ||||||
Time: | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow | $1,800 | $670 | $720 | $680 | $460 | $260 |
Should the project be accepted or rejected?
accepted
rejected
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