1.Peaceful Cruises wants to build a new cruise ship that has an initial investment of $250 million. It is estimated to provide an annual cash flow over the next 15 years of $30 million per year. The discount rate is 7%.

What is the discounted payback period? Enter your answer rounded to two decimal places

2.LakeCraft is considering investing in a transport ship with an expected life of 15 years that costs $90 million and will produce net cash flows of $7 million per year. LakeCraft's cost of capital is 10%. Enter your answers rounded to 2 DECIMAL PLACES.

a. What is the payback period?

b. What is the net present value (NPV) of the project?

3.Suppose a company had an initial investment of $45,000. The cash flow for the next five years are $16,000, $14,000, $18,000, $20,000, and $18,000, respectively. The interest rate is 11%. Enter your answers rounded to 2 DECIMAL PLACES.

a. What is the discounted payback period?

b. If the firm accepts projects with discounted payback periods of less than 3 years, will the project be accepted?

(Yes/No)

c.What is the NPV of the project?