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(2 points) b. Sigpose that the five prejectu are a mimally malimit. Wack one wousg pe acceptest? (2. peints) c Suppose that the five projocts

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(2 points) b. Sigpose that the five prejectu are a mimally malimit. Wack one wousg pe acceptest? (2. peints) c Suppose that the five projocts are indepenlect. Fee toove grojecta that are acceptalle, hor would they be nandent (5 points) 4. Suppose the following proyect which cota \$1. 5 aillien has the followine eatimated cack flows ever the next five years and the requirod relame for this projact is the What is the MPY od this project? 5. Congratulations, you and your family have wot a beery that poys you $100.000 a year making she lovery payments. (4 points) a. Yoe are offered a lump sum of 51.6 mithoe todiry to forego the $100,000 a ytar forever. Suppose that the interest rate ce ridk-froe investmects is 5 . Would you aceept the 51.6 mitition? (4 points) b. Suppose itrutead that the intered nate on riuk-froc investroents is lowinstead of 5%. Would you accept the $1.6 million? (6 points) 6. Determine whether the IRR for a project with the folloming cash flows is about 905 or 13% if its cost is 513,058,741. 7. As an analyst for a veature cagital finn you have boen axiced to evaluase an 518 million investment in a startiop company. You peyect that thete will be no cash flows foe six years but that the investmeat made woald be worth 525 million in six years. Given the riskiness of the investment opportunity, your firm requires a 22% annual rite of returm. (4 points) a. What is the NPV of this investment opportanity? (2 points) b. Should the venture canital firm accept the investment opportunity? (4 points) c. Calculate the IRR. (2 points) d. According to the IRR, should the venture capital firm accept the investment opportunity? (10 points) 8. You are the advisor to the boand of trustees of a for-profit uaiversity that is considering expanding its current facilities. The board shows you the graph below that was provided by a consulting firm showing the NPV profile if the current facilities are expanded. 3. (12 points) a. Complete the following table for the five projects: (2 points) b. Suppose that the five projects are mutually exclusive. Which one would be accepted? (2 points) c. Suppose that the five projects are independent. For those projects that are acceptable, how would they be ranked

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