4. The capital hudgeting director e expected to last for 10 years and produ c Ir the firm's cost of capital and starts s project which costs i ng depreciatim of 544,500 per year was the projects IR? h 5. If the cost of capital is Following cash flows: what is a kim years of project with the Cash Flow SO 000 100.000 SO 40.000 25.000 a. 1.8763 2.0000 .23333 d. 2.4793 e. 2.6380 6. Belanger Construction is considering the following project. The project has an up-front cost and will also generate the following subsequent cash flows 5400 200 The project's payback is 1.5 years, and it has a cost of capital of 10%. What is the project's modified internal rate of return (MIRR)? a. 10.00% b. 19.65% c. 21.54% d. 23.82% c. 14.75% 7. When evaluating a new project, the firm should consider all of the following factors except: a. Changes in working capital attributable to the project. b. Previous expenditures associated with a market test to determine the feasibility of the project, if the expenditures have been expensed for tax purposes. c. The current market value of any equipment to be replaced. d. The resulting difference in depreciation expense if the project involves replacement. e. All of the above statements above should be considered. 8. Adams Audio is considering wether to make an investment in a new type of technology. Which of the following factors should the company consider when it decides whether to undertake the investment? a. The company has already spent $3 million research the technology. b. Th new technology will affect the cash flows produced by its other operations c. If the investment is not made, then the company will be able to sell one of its laboratories for $2million. d. All of the factors above should be considered. e. Only factors band e should be considered. 9. Other things held constant, which of the following would increase the NPV of a project being considered? a. A shift from MACRS to straight-line depreciation. b. Making the initial investment in the first years rather than spreading it over the first 3 years. c. A decrease in the discount rate associated with the project. d.The sale of the old machine in a replacement decision at a capital loss rather than at book value. e. An increase in required working capital