Question
Hello, can you complete this? I really liked your work on the other questions you answered yesterday. It is late notice, but I need this
Hello, can you complete this? I really liked your work on the other questions you answered yesterday. It is late notice, but I need this by 2pm on 1/15/2017. If you are not able to complete it, please let me know. Thank you.
QUESTION 1
What is the Internal Rate of Return (IRR) for the following cash flows?
Year | CFs |
0 | -1,000 |
1 | 100 |
2 | 200 |
3 | 350 |
4 | 800 |
Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
QUESTION 2
What is the net present value of a project with the following cash flows if the discount rate is 12 percent?
Year | CFs |
0 | -1,210 |
1 | 431 |
2 | 272 |
3 | 232 |
4 | 341 |
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 3
Which one of the following methods of analysis ignores the time value of money?
Net present value |
Modified Internal rate of return |
Payback |
Internal rate of return |
Profitability index |
1 points
QUESTION 4
Which of the following is the correct definition of Internal Rate of Return (IRR)?
IRR is the rate at which Net Present Value (NPV) equals initial outlay. |
IRR is the rate at which the Net Present Value (NPV) equals present value of all future cash flows. |
IRR is the rate of return required by project's investors. |
IRR is the rate at which the present value of all future cash flows equals initial outlay. |
IRR is the same as Average Accounting Rate of Return. |
1 points
QUESTION 5
What is the profitability index of a project with the following cash flows if the discount rate is 17 percent?
Year | CFs |
0 | -1,277 |
1 | 725 |
2 | 456 |
3 | 338 |
|
|
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 6
A project has the following cash flows. What is the payback period?
Year | CFs |
0 | -$235 |
1 | $66 |
2 | $58 |
3 | $46 |
4 | $255 |
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 7
What is the Modified Internal Rate of Return (MIRR) for the following cash flows? Assume that the required rate of return is 4%
Year | CFs |
0 | -1,000 |
1 | 100 |
2 | 200 |
3 | 350 |
4 | 800 |
Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
1 points
QUESTION 8
A project has the following cash flows. What is the payback period?
Year | CFs |
0 | -$436 |
1 | $290 |
2 | $55 |
3 | $201 |
4 | $87 |
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 9
Which one of the following indicates that a project is expected to create value for its owners?
Profitability index less than zero |
Payback period greater than the cut-off period |
Internal rate of return (IRR) that is less than the required rate of return |
NPV that is greater than zero |
Positive IRR |
1 points
QUESTION 10
What is the net present value of a project with the following cash flows if the discount rate is 18 percent?
Year | CFs |
0 | -509 |
1 | 207 |
2 | 337 |
3 | 322 |
4 | 393 |
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 11
ABC Inc. is considering a project with an initial cost of $1,580. The project will not produce any cash flows for the first four years.Starting in year five, the project will produce cash inflows of $844 a year for four years. If the discount rate of 3 percent, what is the project's net present value?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 12
What is the profitability index of a project with the following cash flows if the discount rate is 15 percent?
Year | CFs |
0 | -1,445 |
1 | 299 |
2 | 236 |
3 | 302 |
4 | 560 |
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 13
Suppose a project has initial outlay of $12,000 and after-tax cash flows of $2,000 each year for first three years and $4,000 eachyear for the following three years. If the required rate of return is 6.50%, what is the equivalent annual annuity?
Enter your answer rounded off to two decimal points.
1 points
QUESTION 14
What is the net present value of a project with the following cash flows if the discount rate is 16 percent?
Year | CFs |
0 | -811 |
1 | 972 |
2 | 389 |
3 | 299 |
|
|
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 15
What is the profitability index of a project with the following cash flows if the discount rate is 11 percent?
Year | CFs |
0 | -255 |
1 | 204 |
2 | 251 |
3 | 226 |
4 | 319 |
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
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