44. You were recently hired by a firm as a project analyst. The owner of the fim is unfamiliar with financial analysis and wants to know only what the expected dollar return is per dollar spent on a given project. Which financial method of analysis will provide the information that the owner requests? A. Internal rate of return B. Modified internal rate of return C. Net present value D. Payback E. Profitability index 45. Good Eats three years. Starting in Year 4, the project will produce cash inflows of $151,000 a year for three years. This project is risky, so s is considering a project with an initial cost of $211,600. The project will not produce any cash flows for the first the firm has assigned it a discount rate of 18.6 percent. What is the project's net present value? A. $113,585.57 B. -$16,670.67 C. $51,786.86 D. $2,255.56 E. -$4,591.11 46. Today, Sweet Snacks is investing $491,000 in a new oven. As a result, the company expects its cash flows to increase by $64,000 a year for the next two years and by $98,000 a year for the following three years. How long must the firm wait until it recovers all of its initial investment? A. 3.97 years B. 4.18 years C. 4.46 years D. 4.70 years E. The project never pays back. 47. Which one of the following will occur when the internal rate of retun equals the required return? A. The average accounting return will equal 1.0. B. The profitability index will equal 0 E. The profitability index will equal the average accounting return. 48. Fast Motors is considering purchasing some new equipment costing $393,000. The equipment will be depreciated on a C. The profitability index will equal 1.0 D. The net present value will equal the initial cash outflow straight-ine basis to a zero book value over the four-year life of the project. Projected net income for the four years is $16,900, $25,300, $27,700, and $18,400. What is the average accounting rate of return? A. 12.49 percent 11.63 percent C. 12.01 percent D. 11.23 percent E. 10.87 percent ring an investment for which you require a rate of return of 8.5 percent. The investment costs $67 400 and ws of $25,720 for three years. Should you accept this project based on its internal rate of return? Why cr why not? A. Yes; because the IRR is 9.51 percent B. Yes; because the IRR is 7.08 percent C. Yes,; because the IRR is 6.67 percent D. No,; because the IRR is 9.51 percent E. No; because the IRR is 7.08 percent