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Filter Corp. has a project available with the following cash flows: Year Cash Flow 0 $15,800 1 5,200 2 6,500 3 5,900 4 4,300 What

Filter Corp. has a project available with the following cash flows:

Year Cash Flow
0 $15,800
1 5,200
2 6,500
3 5,900
4 4,300

What is the project's IRR?

  • 16.16%

  • 14.92%

  • 16.58%

  • 15.54%

  • 17.40%

2)

There is a project with the following cash flows :

Year Cash Flow
0 $26,100
1 7,700
2 8,050
3 7,450
4 5,800

What is the payback period?

  • 3.50 years

  • 2.61 years

  • 3.95 years

  • 4.00 years

  • 3.77 years

3)

Bruin, Inc., has identified the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 $36,900 $36,900
1 19,260 6,760
2 14,760 13,260
3 12,260 19,760
4 9,260 23,760

a. What is the IRR for Project A?

b. What is the IRR for Project B?

c. If the required return is 15 percent, what is the NPV for Project A?

d. If the required return is 15 percent, what is the NPV for Project B?

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