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I need help with questions 5 and 9 please M vs -36% 9:28 project never pays back An investment project provides cash inflows of $10,040

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I need help with questions 5 and 9 please

M vs -36% 9:28 project never pays back An investment project provides cash inflows of $10,040 in year 1, $9,560 in year 2; $10,820 in year 3; $7,380 in year 4 and $9,230 in year 5. What is the project payback period if the initial cost is $23,140? Enter 0 if the project never pays back 2 You are buying a piece of equipment for $50,800. You will put $15,000 down and finance the remainder. Your opportunity cost is 4 percent for the equity portion and 11.2% percent for the loan portion. What discount rate should you use to evaluate this project? 3 10 4 A project that provides annual cash flows of $2,880 for the first five years and $2,110 for the next three years costs $9,400 today. At a required retum of 9.2%. what is the NPV of the project? An investment project that costs $45,000 provides cash inflows of $7,180 in year 1, $9,560 in year 2; $10,820 in year 3, $7,380 in year 4 and $9,230 in year 5What is the NPV of the project if the cost of capital is 7.1%? 5 An investment project that costs S12,350 provides cash flows of $13,600 in year 1; $19,560 in year 2; -$8,820 in year 3, -$5,380 in year 4, and $8,230 in year 5 . What is the NPV of the project if the cost of capital is 8.6%? (Hint: note that negative sign in the cash flows for year 3 & 4, means they are cash outflow 6 13 In question #6 above, do you accept or reject the project? Enter 1 if accept, 0 if reject. An investment has an installed cost of $656. The cash flows over the five-year life of the investment are projected to be $207, $251, $318, $199, and $167. If the discount rate is 5.4%, what is the profitability index? 7 14 8 15 9 A project with the required rate of return of 8.6% provides annual cash flows of $2,830 during the years 1 3, nothing during the years 4-5 and $5,550 during the years 6-7. The project costs $12,200 today. What is the IRR of the project? 10 In question #9 above, do you accept or reject the project? Enter 1 if accept, reject. if 17 18 27 28 29 Questions 123 Ans

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