A project costs $80,000 and will be depreciated straight-line to zero over its 4 year life. The project generates OCF of $22,000 and the fixed assets will be sold for $9,000 at the termination of the project. If the project has a tax rate of 35% and a WACC of 10%, what is the NPV? Select the range that includes the correct answer. Less than $10,000 Greater than - $10,000, but less than-$5,000 Greater than or equal to $5,000, but less than $0 Greater than or equal to $0, but less than $5,000 Greater than or equal to $5,000 You are considering investing in a process that is a cost-cutting proposal. This project will decrease operating expenses (excluding depreciation expense) by $50 on an after-tax basis for each of the three years of the project's life. The process has an initial cost of $225 and will be depreciated straight-line to zero. Assume a 34% tax bracket, a discount rate of 10%, and a salvage value of zero. If the equipment is sold to another company at the end of year 3 for $80, what is the IRR? Select the range that includes the correct answer. IRR is less than 8% IRR is greater than or equal to 8%, but less than 9% IRR is greater than or equal to 9%, but less than 10% IRR is greater than or equal to 10%, but less than 11% IRR is greater than or equal to 11% True or False. Project X has a positive IRR. Given the positive IRR, Project X must also have a positive NPV. True False A project has the following annual cash flows (see below) and a WACC of 12%. Calculate the project's MIRR (modified internal rate of return). Select the range that includes the correct answer. Year Year 1 Year 2 Year 3 Year 4 -$100,000 $30,000 $45,000 $25,000 $50,000 Less than 15% Greater than or equal to 15%, but less than 16% Greater than or equal to 16%, but less than 17% Greater than or equal to 17%, but less than 18% O Greater than or equal to 18% True or False. If a project is found acceptable by the PBP (payback period) method, the NPV (net present value) might not find it to be acceptable. True O False A project costs $300 and has cash flows of $75 for the first three years and $50 in each of the project's last three years. What is the payback period of the project? Select the range that includes the correct answer. Less than 4 years Greater than or equal to 4 years, but less than 5 years Greater than or equal to 5 years, but less than 6 years Greater than or equal to 6 years, but less than 7 years Greater than or equal to 7 years