3.300, 000 in year 1: 31,900,000 in year 2; $1,700,000 in year a) $1,700,000 b) 5371,764 9-$137.053 $4,862,947 7) A firm is evaluating three independent capital budgeting projects. The net present value of each project is shown below Given this information, which project(s) should the firm accept? Project NP $10 mill accept Projects I and 2, and reject Project3 b) accept Projects 1 and 3, and reject Project 2 c) accept Project 3, and reject Projects 1 and 2 d) accept all projects 8) What is the profitability index of a project that requires an initial investment of $600,000, after-tax cash $250,000 per year for 3 years, and a cost of capital of 10% APR? Profitability Index-(NPVnitial Investment) a) 0.04% b) 21.71% 3.62% 25% 9) What is the IRR of the foll operating cash inflows of S1,800,000 in year 1; $1,900,000 in year 2; $1,700,000 in year owing project, if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax 3, and $1,300,000 in year 4? a) 15-57% b) 0.00% c) 13.57% d) 12.25% 10) A fimn with a cost of capital of 13% APR is evaluating three mutually exclusive capital budgeting projects. The IRRs of these projects are shown below. Given this information, which project(s) should the firm accept? Project IRR | 12% | 15% 13% accept Project 1 and 2, and reject Project 3 cept Project 2, and reject Projects 1 and 3 caccept Project 1, and reject Projects 2 and 3 d) accept Project 3, and reject Projects 1 and 2