A project that provides annual cash flows of $2,400 for 9 years costs $12,000 today. If the appropriate discount rate is 9 percent, what is the net present value (NPV)?

Question 11 options:

A)

$2,389

B)

$9,600

C)	None of these are correct.

D)

$3,426

E)

$2,191

Answer:-_____________

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.644 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will be worthless. The project is estimated to generate $4,128,000 in annual sales, with costs of $1,651,200. If the tax rate is 33%, what is the annual operating cash flow (OCF) for this project?

Question 15 options:

A)	$2,476,800

B)	$2,170,296

C)	None of these are correct.

D)	$2,061,781

E)

$622,296

Answer:_________

A project that provides annual cash flows of $2,300 for 8 years costs $9,900 today. What is the internal rate of return (IRR)?

Question 12 options:

A)

17.95%

B)

14.65%

C)

16.28%

D)	None of these are correct.

E)	16.00% Answer:__________