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.	-$1,034,791.00
	b.	$ 1,842,777.21
	c.	-$1,232,100.41
	d.	-$884,500.56

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.	-$578,556
	b.	$578,556
	c.	$657,061
	d.	$575,680