A company is considering the purchase of a machine that costs $6,000. Assume the company has a required rate of return of 10% and the following cash flow schedule:Year 1:3,000 Year 2:1,500Year 3:3,000

1What is the projected payback period? A. 1.5 yearsResponse B. 2.0 years C. 2.5 years

2What is the discounted payback period? Response A. 1.4 years B. 2.9 years C. 3.6 years

3What is the project's NPV? Response A. -$309 B. $883 C. $221

4What is the project's IRR? Response A. 19% B. 12% C. 21%

5What is the project's Profitability Index (PI)? Response A. 0.72 B. 1.18 C. 1.24

6A corporation is considering an investment of $650 million with expected after-tax cash inflows of $190 million per year for six years. The required rate of return is 9 percent. What is the project's: Response NPV?IRR? A.$202 million18.87% B.$205 million17.82% C.$290 million20.94%