20) A project is projected to cost $15,000 to undertake. It will have the following cash infows: Year 1 - 3,700 Year 2- 5,800 Year 4-11,250. What is the projects NPV, given a 14% required rate of return?

Select one:

a.0

b.$630.57

c.$301.96

d.-$301.96

e.-$630.57

21) A project is projected to cost $20,000 to undertake. It will have the following cash infows: Year 1 - 10,000 Year 2- 5,800 Year 4-11,250. What is the projects NPV, given a 10% required rate of return?

Select one:

a.$2,336.59

b.-$2,336.59

c.$301.96

d.-$301.96

e.$1,568.20

22) A project is projected to cost $165,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $100,000; Year 2 90,000; Year 3 - $89,000; Year 4 20,000. What is the projects payback?

Select one:

a.3.84 years

b.1.72 years

c.4.5 years

d.5.0 years

23) Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $160,000. Bill expects the after-tax cash inflows to be $40,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Jamaica. Assume the required return is 15%. What is the project's PI? Should it be accepted? Select one:

a.0.88; yes

b.1.04; yes

c.0.88; no

d.1.00; indifferent

24) Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $160,000. Bill expects the after-tax cash inflows to be $45,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Jamaica. Assume the required return is 15%. What is the project's PI? Should it be accepted? Select one:

a. 0.88; yes

b. 1.17; yes

c. 0.88; no

d. 1.00; indifferent

25) A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $400,000; Year 2 500,000; Year 3 - $650,000; Year 4 750,000; Year 5 800,000. What is the projects Profitability Index if the required return is 10%?

Select one:

a.1.14

b.1.11

c.1.09

d.1.15

e.1.17