A project will cost $1,000 today and will pay back $100 one year from today (t=1), $200 two years from today (t=2), $500 three years from today (t=3) and $1,000 four years from today (t=4). If the required rate of return is 7%, answer question Q1 to Q5.

Q1: What is the present value of the future cashflow?

a)1578.62

b)1439.19

c)1374.25

d)1664.83

Q2: What is the NPV of the project

a)439.19

b)1439.19

c)578.62

d)1374.25

Q3: What is the IRR of the project?

a)21.75%

b)15.39%

c)16.84%

d)19.77%

Q4: What is the payback period of the project?

a)3.5

b)3.2

c)3.8

d)4

Q5: How long is the Discounted Payback Period

a)3.28

b)3.42

c)4

d)2.77