A firm evaluates all of its projects by using the net present value (NPV) decision rule. If the required return is 18%, what is the NPV?

Year	Cash Flow
0	$29,000
1	20,000
2	12,000
3	5,000

Question 9 options:

A)

-$389

B)

-$330

C)	None of these are correct.

D)

$8,000

E)

$1,748

Answer:_____________

What is the internal rate of return (IRR) of the following set of cash flows?

Year	Cash Flow
0	$7,147
1	3,100
2	3,900
3	4,600

Question 10 options:

A)	None of these are correct.

B)

26.62%

C)

27.95%

D)

27.15%

E)

25.29%

Answer:_____________

What is the profitability index for the following cash flows if the relevant discount rate is 12 percent?

Year	Cash Flow
0	$7,600
1	5,900
2	5,100
3	3,400

Question 13 options:

A)

1.52

B)

1.55

C)

1.62

D)	None of these are correct.

E)	1.45 Answer:______________