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Detailed Answer please (xi) When the IRR is equal to the discount rate, the NPV is: A positive. B equal to zero. C D (1
Detailed Answer please
(xi) When the IRR is equal to the discount rate, the NPV is: A positive. B equal to zero. C D (1 mark) (xii) The Commerce Company is evaluating a project with the following cash flows: Year Cash Flow 0 ($10,000) 1 2 3 negative. cannot be determined without knowing the discount rate. $ 4,000 $ 5,000 $ 6,000 What is the payback period of the proposed Commerce Company project? 1.5 years 2.7 years 3.2 years 4.5 years 4 5 ABCD $2,000 $3,000 (3 mark) (xiii) What is the net present value of the proposed Commerce Company project if the discount rate is 7%? A $10,000 $9,347 B C $6,921 D $5,847 (2 marks) (xiv) What is the discounted payback period of the proposed Commerce Company project if the discount rate is 7%? A 3.09 years B 3.19 years C 3.39 years D 3.59 years (2 marks) Step by Step Solution
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