answer all

IG What is the profitability index of a project that has an initial cash outflow of 5600, an intow of S160 for the next 3 years and a cost of capital of 10 percent A) 0.663 B) 2.036 C) 1.036 D) 2.739 What is the IRR for the following project if its initial after-tax cost is $5,000,000 and it is expected to provide after-tax operating cash flows of ($1,600,000) in year 1, $2,900,000 in year 2. $2,400,000 in year 3, and $2,600,000 in year 4? A) 5.83% B) 9.67% C) 11.44% D) 6.88% 17. A firm with a cost of capital of 13 percent is evaluating three capital projects. The internal rates of retum are as follows: Project Internal Kate of Return 1476 The firm should A) accept Project 1 and 2, and reject Project 3 B) accept Project 2, and reject Projects 1 and 3 C) accept Project 1, and reject Projects 2 and 3 D) accept Project 3, and reject Projects 1 and 2 Table 10.3 18 A firm is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Project A Initial End-of-Year Investment Cash Flows $35,000 $20,000 20,000 20,000 Project B Initial End-of-Year Investment Cash Flows $90,000 $50,000 50,000 80,000 If the firn in Table 10.3 has a required payback of two ycars, it should A) accept Project A and Project B B) accept Project A and reject Project B C) reject Project A and accept Project B D) reject both the projects