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A) Compute the IRR statistic for projec tA and note whether the firm should accept or reject the project with the cash flows shown below

A) Compute the IRR statistic for projec tA and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12%.

Project A

Time

0

1

2

3

4

Cash Flow

-$9,000

$3,350

$4,180

$1,520

$2,000

B) Compute the payback statistic for Project B and recommend whether the firm should accept or reject the project with the cash flows, shown below if the appropriate cost of capital is 8% and the maximum allowable payback is four years.

Project B

Time

0

1

2

3

4

5

Cash Flow

-$1,000

$350

$480

$520

$300

$100

C) Compute the NPV statistic for Project C and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent.

Project C

Time

0

1

2

3

4

Cash Flow

-$9,000

$3,500

$4,300

$1,550

$900

D) Compute the NPV statistic for Project D and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8%.

Project D

Time

0

1

2

3

4

5

Cash Flow

-$10,000

$5,000

$-6,00 0

$6,000

$7,000

$10,000

E) Compute the MIRR statistic for Project E and tell whether to accept or reject the project with the cash flows shown below if the appropriate cost of capital is 13%.

Project E

Time

0

1

2

3

4

Cash Flow

-$4,750

$5,330

-$4,180

$1,520

$2,000

F) Compute the discounted payback statistic for Project F and recommend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10% and the maximum allowable discounted payback is four years.

Project F

Time

0

1

2

3

4

5

Cash Flow

-$8,000

$3,350

$4,180

$1,520

$0

$1,000

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