An investment is expected to produce annual cash flows of $1,600, $1,800, and $2,600. Assuming a discount rate of 10%, the present value of this series of cash flws is (Round your answer to two decimal places.) Period 1 2 3 10% 0.90909 0.82645 0.75131 a. $3,239.44 O b. $3,047.23 O c. $4,895.56 O d. $3,504.42 A project provides a reasonable return if: 1 2 a. it receives a cash flow equal to the original investment in the irst year of investment. O b. it provides a return equal to initial cost of the project. Oc. it provides return lower than the initial investment in the project. O d. it covers the opportunity cost of funds invested. 4. 6 LO 17 8 9 Daphne Inc., a steel manufacturing company is planning to buy a new plant at $940,000. The life of the plant is estimated to be 5 years and has cash flows of $94,000, $188,000, $282,000, $376,000, and $470,000. Calculate the payback periou for the new plant. 2 3 O a. 3 years O b. 4 years O c. 2 years d. 5 years 4 5 5 6 7 8 9 Near 10