Can I get help with the first two questions please? Thank you. I think #7 might be D, cannot be determined, because we are not given the number of years for which the cash flows will increase, thus we cannot determine NPV. Is this correct or is it A? Thanks

Use the information for the questions below 150000 100000 50000 0 NPV 1 2 3 -50000 4 5 6 7 8 9 10 -100000 -150000 -200000 Discount Rate 7) The owner of a hair salon spends $1,000,000 to renovate its premises, estimating that this will increase her cash flow by $220,000 per year. She constructs the above graph, which shows the net present value (NPV) as a function of the discount rate. If her discount rate is 6%, should she accept the project? A) No, because the NPV is negative at that rate. B) No, because the NPV is positive at that rate. Yes, because the NPV is positive at that rate D) Cannot be determined from the information given 8) A convenience store owner is contemplating putting a large neon sign over his store. It would cost $50,000, but is expected to bring an additional $24,000 of profit to the store every year for five years. Would this project worthwhile if evaluated using a payback period of two years or less and if the cost of capital is 10%? A) No, since the value of the cash flows over the first two years are less than the initial investment. B) Yes, since it will pay back its initial investment in two years. C) Yes, since the value of the cash flows into the store, in present dollars, are greater than the investment D) Yes, since the cash flows after two years are greater than the initial investment. 9) The difference between scenario analysis and sensitivity analysis is A) only sensitivity analysis allows us to change estimated inputs of net present value B) scenario analysis is based upon the internal rate of return (IRR) and sensitivity analysis present value (NPV) scenario analysis considers the effect on net present value (NPV) of changing mu D) only scenario analysis breaks the net present value (NPV) calculation into its comp het present value (NPV) analysis fy analysis is based upon net ging multiple project parameters its component assumptions ng one month from now at an interest rate 10) You are saving money to buy a car. If you save $310 per month starting one me of 6%, how much will you be able to spend on the car after saving for 4 years A) $10,062.20 B) $23,478.46 D) $20,124.40 C) $16,770.33 11) Sara wants to have $600,000 in her savings account when she retires. How now, if the account pays a fixed interest rate of 8%, to ensure that she has $600,00 A) $180,221 B) $231,712 How much must she put in the account she has $600,000 in 20 years? D) $139,541 9 $128,729