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Could you please help me out? thank you very much. 1. A project which has an initial cost of $9,191 will generate the following net

Could you please help me out? thank you very much.

1.

A project which has an initial cost of $9,191 will generate the following net cash flows at the end of each year:

Year 1: +$4,000

Year 2: +$3,000

Year 3: +$2,000

Year 4: +$2,000

It is known that this project has a positive NPV at the company's cost of capital of 8%. Which of the following is closest to the IRR on this project?

A.8.6%

B.7.8%

C.8.8%

D.7.6%

2.

Consider the following project:

Year 0 cash flow:-100

Year 1 cash flow:40

Year 2 cash flow:50

Year 3 cash flow:60

Year 4 cash flow:-

Discount rate:15%The NPV of the project is closest to:

A.12.6

B.12.0

C.15.0

D.42.9

3.

Tank Ltd is considering undertaking the purchase of a new piece of equipment that is expected to increase pre-tax income(EBITDA) by $7,000 each year for the next 5 years. It costs $30,000 to purchase today and for tax purposes must be depreciated down zero over its 8 year useful life using the straight-line method. If Tank is actually forecasting a salvage (for capital budgeting purposes) of $15,000 after 5 years, what is the machine's net cash flow (after tax) for year 5? Assume the tax rate is 30%.

NB: EBITDA is "Earnings Before Interest, Taxes, Depreciation and Amortisation"

A.$24,400

B.$19,900

C.$18,750

D.$22,000

4.

  • A firm is considering aproject that has the following estimated cashflows:Increased sales to business of $160,000 for the next 5 years (starting in one year's time).
  • Increased costs of $20,000 forthe next five years (startingin one year's time).
  • The initial capital expenditure requiredis $100,000, and salvage value at the end of 5 years is expected to be $30,000.
  • Cost of the feasibility study is $10,000.

If the firm is facing a discount rate of 11%, what is the NPV of this project?

Ignore taxes.

A.$567,229

B.$373,229

C.$425,229

D.$435,229

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