22-25

22. A corporation is considering an investment with the following data Year 1 Year 2 Year 3 Year4 Year 5 Investment.$32.,000 $12,000 Cash inflow $8,000 $8,000 $20,000 $16,000 $16,000 Cash inflows occur evenly throughout the year. The payback period for this investment is: A) 3.0 years B) 3.5 years C) 4.0 years D) 4.5 years 23. An investment project requires an initial investment of $100,000. The project is expected to generate net cash infiows of $28,000 per year for the next five years. These cash inflows occur evenly throughout the year. Assuming a 12% discount rate, the project's payback period is A) 0.28 years B) 3.36 years C) 3.57 years D) 1.40 years 24. A corporation has provided the following data concerning an investment project that it is considering Initial investment Annual cash flows $480,000 145,000 The life of the project is 4 years. The company's discount rate is 8%. The net present value of the project is closest to: A) $480,000 B) $480,240 C) $100,000 D) $240 25. A corporation has provided the following data concerning a 3-year investment project that it is considering $670,000 61,000 Initial Investment Working Capital Annual Cash Flow Salvage Value 227,000 per year 20,000 The company's discount rate is 10%. The working capital would be released for use elsewhere at the end of the project. The net present value of the project is closest to: A) S(151,658) B) S(105,610) C) $11,000 D) $(44,847)