A project will cost $160,000. The after tax future cash flows are expected to be $40,000 annually for 7 years. For# 3-5

3. What is the project's payback period?

A. 1.5 years B. 2.0 years C. 3.3 years D. 4.0 years E. 4.3 years

4. Assume the required return is 10%. What is the projects's NPV?

5. Assume the required return is 17%. What is the project's IRR? Accet?

A. 12.2% yes

B. 12.2% no

C. 16.3% yes

D. 16.3% no

E. 17% indifferent