Eastern Homes Inc. just agreed to pay $8,000 today, $11,000 in one year, and $13,000 in two years to a landowner to explore valuable minerals. If the landowner invests the money at a rate of 6.5% compounded annually the investment will be worth $22,111.08 two years from today. True False The easiest decision model to administer is the ... This model answers one basic question: How soon will I recover my initial investment? profitability index internal rate of return (IRR) payback period discounted payback period The initial outlay or cost for a four-year project is $1,000,000. The respective cash inflows for years 1, 2, 3 and 4 are: $400,000, $350,000, $350,000 and $300,000. What is the discounted payback period if the discount rate is 9%? about 3.32 years about 3.45 years about 3.46 years about 3.55 years The cash flows for a project are -$70,000 in costs that occur today and future cash flows of $25,000 at the end of the next four years. If you are manager do you accept this project if the discount rate is 10%? You reject the project because the PV of the future cash flows are less than $70,000 You reject the project because the IRR is less than 10%. You accept the project because the NPV is greater than $10,000 and the IRR is 15.97%. You accept the project because the NPV is $9,246.64