A.

A proposed project has an initial cost of $78,000 and is expected to produce cash inflows of $23,700, $47,100, and $38,750 over the next 3 years, respectively. What is the net present value of this project at a discount rate of 14.1 percent?

$5,429.09

$6,312.40

$3,142.41

$5,036.11

B.

A project has an initial cash outflow of $1,090 and cash inflows of $310 per year for 4 years. What is the discounted payback period at a discount rate of 9.0 percent?

Never

3.83 years

2.90 years

3.52 years

C.

Marine Motors is considering a project that requires an initial investment in fixed assets of $56,000. The project will produce an annual net income of $8,100, $7,300, and $10,700 over the next 3 years, respectively. What is the average accounting return?

33.89 percent

15.22 percent

31.07 percent

16.95 percent