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1.Project B requires an Initial (Year 0) Investment of $5,000,000; and will return $1,115,000 for each year of its five year useful life. What is
1.Project B requires an Initial (Year 0) Investment of $5,000,000; and will return $1,115,000 for each year of its five year useful life. What is the project's Internal Rate of Return?
a. 30.74%
b. 3.74%
c. 23.74%
d. 13.74% .
2.A project has up front (Year 0) costs of $75,000; and will generate Cash Flows of 25,000 in its first 2 years and $ 50,000 in Year 3 and $15,000 in Year 4. What is its payback period if the company requires a 14% return on projects of similar risk?
a. 2.25 PERIODS
b. 4.00 PREIODS
c. 2.50 PERIODS
d. 3.00 PERIODS
3.Project B requires an Initial (Year 0) Investment of $5,000,000; and will return $1,155,000 for each year of its five year useful life. If the projects required rate of return is 14%, what is the Net Present Value (NPV) of the Project B?
a. | ||
b. | ||
c. | ||
d. |
4.What is the NET PRESENT VALUE of a project with the following estimated Cash Flows (CFs), if the associated risk requires a 12% rate of return? Year Cash Flow 0 -$ 1,000,000 1 450,000 2 500,000 3 400,000 4 900,000
a. | ||
b. | ||
c. | ||
d. |
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