Need help with my finance homework. I've attached a word files with all the questions. Please answer, majority are on TVM.

Question 1 Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive). Which of the following statements is most correct? Question 1 options: All else equal, a project's IRR increases as the cost of capital declines. All else equal, a project's NPV increases as the cost of capital declines. All else equal, a project's payback period increases as the cost of capital declines. Answers a and b are correct. Answers b and c are correct. As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the follow Shannon Industries is considering a project which has the following cash flows: Year Cash Flow 0 ? 1 $2,000 2 3,000 3 3,000 4 1,500 Theproject has a payback period of 2.5 years. The firm's cost of capital is 12 percent.What is the project's net present value NPV? Question 2 options: $ 577.68 $ 765.91 $1,049.80 $2,761.32 $3,765.91 Question 3 Other things held constant, an increase in the cost of capital discount rate will result in a decrease in a project's IRR. Question 3 options: True False Question 4 The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? Question 4 options: 4.00 years 4.86 years 5.23 years 6.00 years 6.34 years Question 5 Assuming that the total cash flows are equal, the NPV of a project whose cash flows accrue relatively rapidly is more sensitive to changes in the discount rate than is the NPV of a project whose cash flows come in more slowly. Question 5 options: True False Question 6 Given two mutually exclusive projects and a zero cost of capital, the payback method and NPV method of selecting investments will always lead to the same decision on which project to undertake. Question 6 options: True False Question 7 A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Project D described below is 10 percent. Assuming that the projects are independent, which project(s) should the company accept? Question 7 options: Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200. Project B has an internal rate of return of 9.5 percent. Project C requires an up-front expenditure of $1,000,000 and has a profitability index of 0.85. Project D requires an up-front expenditure of $200,000 and generates a net present value of negative $200. None of the projects above should be accepted. Question 8 The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. What is the NPV for this investment? $135,984 $ 18,023 $219,045 $ 51,138 $ 92,146 Question 9 Which of the following capital budgeting evaluation techniques will always produce the correct project choice, for both independent and mutually exclusive projects? Question 9 options: NPV IRR Payback Period Profitability Index None of the above will always indicate the best project choice. Question 10 (10 points) You are offered an investment with returns of $ 2,963 in year 1, $ 4,938 in year 2, and $ 4,298 in year 3. The investment will cost you $ 5,791 today. If the appropriate Cost of Capital is 9.4 %, what is the Net present Value of the investment? Your Answer: Question 10 options: Answer Question 1 (10 points) A firm plans to build a plant on land it owns. The firm paid $200,000 for the land 30 years ago. Its current market value is $2,000,000. Construction costs, including machinery, will require an initial outlay of $20,000,000. The project will create sales of $12,000,000 per year for years 1-10. No change in other operating costs is expected. The firm uses straight line depreciation over the 10 year life of the project. Salvage value is $1,000,000. The tax rate is 40%. 23. The initial investment is $_________. Question 1 options: $24,000,000 $24,200,000 $23,000,000 $22,000,000 $22,200,000 Save Question 2 (10 points) A firm plans to build a plant on land it owns. The firm paid $200,000 for the land 30 years ago. Its current market value is $2,000,000. Construction costs, including machinery, will require an initial outlay of $20,000,000. The project will create sales of $12,000,000 per year for years 1-10. No change in other operating costs is expected. The firm uses straight line depreciation over the 10 year life of the project. Salvage value is $1,000,000. The tax rate is 40%. The incremental operating cash flow in year 5 is $________. Question 2 options: $7,960,000 $7,200,000 $8,000,000 $9,240,000 $8,400,000 Question 3 A firm plans to build a plant on land it owns. The firm paid $200,000 for the land 30 years ago. Its current market value is $2,000,000. Construction costs, including machinery, will require an initial outlay of $20,000,000. The project will create sales of $12,000,000 per year for years 1-10. No change in other operating costs is expected. The firm uses straight line depreciation over the 10 year life of the project. Salvage value is $1,000,000. The tax rate is 40%. The incremental total (operating + non-operating) cash flow in year 10 is $_______. Question 3 options: $10,240,000 $ 9,400,000 $ 9,000,000 $ 8,960,000 $ 8,200,000 Question 4 (10 points) Given the information in the chart below Given the information in the chart below: Project A Project B Year Cash Flow Year Cash Flow 0 -1,000 0 -2,000 1 900 1 900 2 900 2 900 3 900 3 900 4 900 4 900 5 5 900 6 6 900 If the discount rate is 12% and you have to choose between these two projects, what is the equivalent annual series of the best project? Question 4 options: $413.55 $440.78 $500.00 $570.77 $584.53 Save Question 5 (10 points) If IRR and NPV yield different accept/reject decisions, then one should choose to accept or reject the project based on _______. Question 5 options: IRR the payback period NPV Both IRR and NPV None of the above Question 6 (10 points) A firm is considering adding a new type of soft drink to its existing line of drinks. Which of the following should not be included in calculating incremental cash flows? Question 6 options: The firm expects sales of the new product to be $5,000,000 per year. Last month, the firm allocated $200,000 per year in order to pay for the rent of the new headquarters office in the country. The firm must pay $3,000,000 for equipment to produce the new drink. The firm expects sales of existing drinks to decrease by $500,000 per year because current customers will switch to the new drink. The property on which the plant will be built has a market value of $10,000,000. Save Question 7 (10 points) Kramerica Industires plans to introduce a new product to the market. Last week, Kramerica hired a marketing firm to develop a TV ad for the product. The marketing firm will develop the ad regardless of Kramerica's decision to continue the project or not. The project will require additional working capital of $300,000 which will be recovered at the conclusion of the project. The firm has spent $250,000 on R&D for this project. To launch the project Kramerica will have to invest $26 million today in plant and machinery. The plant and machinery have an economic life of 20 years and a salvage value of $4 million. The project is expected to generate sales of $9 million per year for 20 years. Of these, 20% are due to lost sales of the existing products of the company. The incremental variable costs of producing the product is $3.4m. Fixed costs are $700,000 per year. Kramerica's accountants have allocated $400,000 in managerial salaries to the project but no additional managers need to be hired. The company uses straight line depreciation. It has a marginal tax rate of 40% and a 10% cost of capital. The initial cash flow at time 0 (t=0) is -$______. Question 7 options: 25,700,000 26,700,000 27,700,000 26,300,000 27,300,000 Question 8 (10 points) Kramerica Industires plans to introduce a new product to the market. Last week, Kramerica hired a marketing firm to develop a TV ad for the product. The marketing firm will develop the ad regardless of Kramerica's decision to continue the project or not. The project will require additional working capital of $300,000 which will be recovered at the conclusion of the project. The firm has spent $250,000 on R&D for this project. To launch the project Kramerica will have to invest $26 million today in plant and machinery. The plant and machinery have an economic life of 20 years and a salvage value of $4 million. The project is expected to generate sales of $9 million per year for 20 years. Of these, 20% are due to lost sales of the existing products of the company. The incremental variable costs of producing the product is $3.4m. Fixed costs are $700,000 per year. Kramerica's accountants have allocated $400,000 in managerial salaries to the project but no additional managers need to be hired. The company uses straight line depreciation. It has a marginal tax rate of 40% and a 10% cost of capital. The cash flow in year 5 (t=5) is $________. Question 8 options: 2,300,000 2,320,000 2,350,000 2,380,000 2,400,000 Question 9 (10 points) Kramerica Industires plans to introduce a new product to the market. Last week, Kramerica hired a marketing firm to develop a TV ad for the product. The marketing firm will develop the ad regardless of Kramerica's decision to continue the project or not. The project will require additional working capital of $300,000 which will be recovered at the conclusion of the project. The firm has spent $250,000 on R&D for this project. To launch the project Kramerica will have to invest $26 million today in plant and machinery. The plant and machinery have an economic life of 20 years and a salvage value of $4 million. The project is expected to generate sales of $9 million per year for 20 years. Of these, 20% are due to lost sales of the existing products of the company. The incremental variable costs of producing the product is $3.4m. Fixed costs are $700,000 per year. Kramerica's accountants have allocated $400,000 in managerial salaries to the project but no additional managers need to be hired. The company uses straight line depreciation. It has a marginal tax rate of 40% and a 10% cost of capital. The cash flow in year 20 (t=20) is $________. Question 9 options: 6,700,000 6,680,000 6,650,000 6,620,000 6,600,000 Save Question 10 (10 points) Which of the following would not be included in calculating the incremental cash flow for a project? Question 10 options: The firm expects sales of the new product to be $5,000,000 per year. Working capital will decrease by $100,000 at t=0 The firm must pay $3,000,000 for equipment to produce the new drink. The firm expects sales of existing drinks to decrease by $500,000 per year because current customers will switch to the new drink. The property on which the plant will be built has bought in1950 for $10,000