Malik's Library company is considering the purchase of a new photocopier that costs $5,000 (Project N), or to fix and update the existing one that costs $3,500 (Project O).

Assume a WACC of 10% The below are the after tax cash flows for projects N and O

	1	2	3
project after tax cashflows for N	1500	2650	2000
project after tax cashflows for O	982	1950	1250

1. For NPV report, which of the following analysis statements should be selected. (Round to the nearest number) *

A-The difference between NPV of N and NPV for O is approximately zero

B-NPV for project N is $56

C-If projects are independent both projects N & O can be accepted

D-All of the above

E-None of the above

2. For MIRR report, which of the following analysis statements should be selected. (Round to the nearest number) *

A-The MIRR for project O is lower than the WACC by at least 3%

B-The MIRR for project N is higher than the WACC by less than 1%

C-Only project N will be rejected if projects are independent

D-All of the above

E-None of the above

3. If the cutoff payback period set by the management is three years less two months. then for discounted payback period report, which of the following analysis statements should be selected. *

A-Only project O should be rejected

B-The discounted payback period for project O exceeds the discounted payback period for project N by more than 3 months

C-The Discounted payback period of project N is 2.96 years

D-All of the above

E-None of the above

4. based on the defined concept of IRR, which of the following below discount rates most fits the IRR for project O. Choose the closest answer *

A-18.75%

B-14.54%

C-10.00%

D-9.11%

E-5.65%