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Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in

  1. Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in the first year, $2,100 in the second year, and $2,600 in the third year. The cost of capital is 12%. What is the project's IRR?

    A.

    15.11%

    B.

    18.20%.

    C.

    20.48%

    D.

    13.04%

    E.

    16.92%

2. Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in the first year, $2,100 in the second year, and $2,600 in the third year. The cost of capital is 12%. What is the project's NPV?

A.

848.66

B.

$461.58

C.

725.32

D.

$531.88

E.

$737.27

3. Jills Hamburger Haven can purchase cooking equipment on sale for $4,600. The asset has a three-year life, will produce a cash flow of $1,800 in the first year, $2,100 in the second year, and $2,600 in the third year. The cost of capital is 12%. What is the project's Profitability Index?

A.

1.16

B.

1.12

C.

1.20

D.

1.06

E.

1.28

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