Question
8. The cash flows for Project C is shown below with the appropriate cost of capital at 15.5 percent and the maximum allowable payback is
8. The cash flows for Project C is shown below with the appropriate cost of capital at 15.5 percent and the maximum allowable payback is three years.
Project C
TIME 0 1 2 3 4 5
Cash Flow $ 910 $ 390 $ 490 $ 660 $ 280 $ 200
Compute the discounted payback period for Project C. Should the project be accepted or rejected?
9. The cash flows for Project E is shown below with the appropriate cost of capital at 8.5 percent.
Project E
TIME 0 1 2 3 4 5
Cash Flow $ 1,100 $ 370 $ 450 $ 530 $ 340 $ 140
Compute the IRR for Project E. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Using the IRR method, should the project be accepted or rejected?
10. Cash flows for Project I is given below and the appropriate cost of capital is 9.5 percent.
Project I
TIME 0 1 2 3 4
Cash Flow $ 12,300 $ 3,100 $ 4,500 $ 1,640 $ 2,850
Calculate the MIRR for Project I. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Using the MIRR method, should the project be accepted or rejected?
11. The cash flows for Project Z are shown below with the appropriate cost of capital at 11.5 percent.
Project Z
TIME 0 1 2 3 4 5
Cash Flow $ 930 $ 390 $ 500 $ 690 $ 150 $ 120
Compute the Profitability index for Project Z. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Using the profitability index, should the project be accepted or rejected?
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