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Exercise 9 Your company has the following proposed projects that have a cost of capital of 11.77% Cashflow Initial Project Year1 Year2 Year3 Year4 Years

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Exercise 9 Your company has the following proposed projects that have a cost of capital of 11.77% Cashflow Initial Project Year1 Year2 Year3 Year4 Years Year6 Investment OP 16000 5000 6000 7000 7000 5000 6000 HY 16000 0 5000 -6000 5000 5000 6000 NC 20000 0 0 28000 OK 15000 2000 per year forever starting in year1 NM 15000 3000 per year forever starting in year4 1) Calculate the NPV of Project OP (5 pts) (A) $8003.94 (B) $8475.94 (C) $8718.94 (D) $8274.94 2) Calculate the NPV of Project HY (5 pts) (A) $-7146.93 (B) $-6401.93 (C) $-6659.93 (D) $-6884.93 ouloto the NPY of Proiect NC (5 pts) (A) S-7146.93 HY (5 pts) (B) S-6401.93 (C) $ 6659.93 (D) S-5884.93 3) Calculate the NPV of Project NC (5 pts) (A) $47.15 (B) $55.7 (C) $53.14 (D) $50.29 4) Calculate the NPV of Project OK (5 pts) (A) $1880.35 (B) $2280.35 (C) $1992.35 (D) $2450.35 5) Calculate the NPV of Project NM (5 pts) (A) $10488.53 (B) $3254.46 [C) $3437.46 (D) $3720.46 6) Calculate the IRR of Project NC (5 pts) (A) 11.87% (B) 7.27% (C) 14.71% (D) 10.78% 7) Calculate the IRR of Project OK (5 pts) (A) 8.21% (B) 13.33% (C) 11.62% (D) 16.17%

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