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A. What is the IRR of the following set of cash flows for Sighter Inc? Year Cash Flow 0 $11,203 1 5,500 2 6,000 3

A.

What is the IRR of the following set of cash flows for Sighter Inc?

Year Cash Flow
0 $11,203
1 5,500
2 6,000
3 5,400

B.

For the following set of cash flows, for Sighter Inc.

Year Cash Flow
0 $8,700
1 4,000
2 5,200
3 4,500

Required:
(a) What is the NPV at a discount rate of 0 percent?

(b) What is the NPV at a discount rate of 13 percent?

(c) What is the NPV at a discount rate of 18 percent?
(d) What is the NPV at a discount rate of 23 percent?

C. For Sighter Inc...

Year Cash Flow
0 $7,500
1 2,500
2 2,700
3 5,200

Required :
(a) What is the profitability index for the cashflows if the relevant discount rate is 11 percent?
(Click to select) $1.154 $1.099 $1.066 $1.132 $1.044

(b) What is the profitability index for the cashflows if the relevant discount rate is 18 percent?
(Click to select) $0.992 $1.011 $0.915 $0.963 $0.934

(c) What is the profitability index for the cashflows if the relevant discount rate is 24 percent?
(Click to select) 0.823 0.893 0.867 0.841 0.91

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