If a project has a negative NPV, the IRR would be higher than the discount rate used to compute NPV. True False

Question 2 John invests $1097 today. If his investment earns 11% a year, how much will his investment be worth after 39 years? Round your answer to the nearest whole dollar.

Question 3 Bon Co, is considering the purchase of a special purpose machine for $43881. The machine has a twelve-year estimate life and an expected cash operating savings of $8144 per year. What is the payback period? Please input your answer to one decimal place. For example, 7.7777 would be input as 7.8.

Question 4 If Bob wants to have $153481 at retirement 42 years from now, how much does he need to invest today assuming an 5 % rate of return on his investment? Round your answer to the nearest whole number.

Question 5 A project requires an immediate investment of $50704 in some new equipment with an estimated useful life of 10 years and no salvage value. If predicted annual savings or cash operating expenses are $10761, what is the accounting rate of return based on the original investment? input your answer to two decimal places, for example .12348 would be input as 12.35

Question 6 Sue wins the lottery. The State of Florida offers her a lump sum of $752839 today or the option of receiving 18 annual payments. What annual payments would be equivalent to the lump sum up front, assuming a 6% interest rate? Enter your number to the nearest whole dollar. Be careful, this question may be slightly different than the question you received on a prior attempt.

Question 7 ABC Company is considering investing in a new piece of machinery with a cost of $-10332. The asset has a three year life. The annual cash flows are estimated at: Year 1 $2599 Year 2 $3277 Year 3 $6446 The discount rate is 8% What is NPV? If NPV is negative, put a minus sign in front of the number. Round to the nearest whole number.

Question 8 If: Acquisition Cost = $50,000.00 Annual Cash Flow = $8,137.23 Project length 10 years The hurdle rate is 8% What is IRR? 10% 6.14% 11% 16.3% 8%