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Hello, I need assistance with Corporate Finance questions on the attached word document. There are 10 questions. Thank you QUESTION 1 Curtis is considering a

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Hello,

I need assistance with Corporate Finance questions on the attached word document. There are 10 questions.

Thank you

image text in transcribed QUESTION 1 Curtis is considering a project with cash inflows of $918, $867, $528, and $310 over the next four years, respectively. The relevant discount rate is 11 percent. What is the net present value of this project if it the start up cost is $2,100? $20. 98 $46. 48 $52. 14 $74. 22 $80. 81 QUESTION 2 A proposed project requires an initial cash outlay of $749,000 for equipment and an additional cash outlay of $48,500 in year one to cover operating costs. During years 2 through 4, the project will generate cash inflows of $354,000 a year. What is the net present value of this project at a discount rate of 16 percent? $105,4 27 $41,20 9 $67,33 3 $128,6 12 $239,6 02 QUESTION 3 Which one of the following is true if the managers of a firm only accept projects that have a profitability index greater than 1.5? The firm should increase in value each time the firm accepts a new project. The firm is most likely steadily losing value. The price of the firm's stock should remain constant. The net present value of each new project is zero. The internal rate of return on each new project is zero. QUESTION 4 Professional Properties is considering remodeling the office building it leases to Heartland Insurance. The remodeling costs are estimated at $3.4 million. If the building is remodeled, Heartland Insurance has agreed to pay an additional $820,000 a year in rent for the next 5 years. The discount rate is 15 percent. What is the benefit of the remodeling project to Professional Properties? $651,2 33 $489,0 72 $5,214 $128,3 99 $311,4 17 QUESTION 5 Charles Henri is considering investing $36,000 in a project that is expected to provide him with cash inflows of $12,000 in each of the first two years and $18,000 for the following year. At a discount rate of zero percent this investment has a net present value of _____, but at the relevant discount rate of 17 percent the project's net present value is _____. $0; -$5,739 $0; -$3,406 $6,000; $5,739 $6,000; $3,406 $6,000; $1,897 QUESTION 6 If a project with conventional cash flows has a profitability index of 1.0, the project will: never pay back. have a negative net present value. have a negative internal rate of return. produce more cash inflows than outflows in today's dollars. have an internal rate of return that equals the required return. QUESTION 7 The Spoon Restaurant is considering a project with an initial cost of $525,000. The project will not produce any cash flows for the first three years. Starting in year four, the project will produce cash inflows of $721,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 17 percent. What is the project's net present value? $382,507 .17 $389,211 .76 $414,141 .41 $451,329 .69 $469,691 .45 QUESTION 8 What is the net present value of a project that has an initial cost of $40,000 and produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent? $798.4 8 $1,240. 23 $1,869. 69 $2,111. 41 $2,470. 01 QUESTION 9 You are making a $120,000 investment and feel that a 10 percent rate of return is reasonable given the nature of the risks involved. You feel you will receive $48,000 in the first year, $54,000 in the second year, and $56,000 in the third year. You expect to pay out $12,000 as an additional investment in the fourth year. What is the net present value of this investment given your expectations? $2,141.9 3 $5,607.1 6 $14,206. 10 $16,233. 33 $18,534. 25 QUESTION 10 The profitability index reflects the value created per dollar: invested. of sales. of net income. of taxable income. of shareholders' equity

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