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No need to show work, Will thumbs up fast. 1.) What is the net present value of a project that has an initial cost of

No need to show work, Will thumbs up fast.

1.) What is the net present value of a project that has an initial cost of $40,000 and produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent?

Group of answer choices

$798.48

$1869.69

$1240.23

$2470.01

2.) The Chicken Basket is considering a project with an initial cost of $20,000. The project will produce cashflows of: $6,700 in year 1, $6,300 in year 2, $5,000 in year 3, and $4,000 in year 4. What is the payback period?

Group of answer choices

3.33 years

3.05 years

3.50 years

3.26 Years

3.) The Black Horse is currently considering a project that will produce cash inflows of $12,000 a year for three years followed by $6,500 in year four. The cost of the project is $38,000. What is the profitability index if the discount rate is 7 percent?

Group of answer choices

1.09

0.96

0.99

1.29

4.) A firm is reviewing a project that has an initial cost of $71,000. The project will produce annual cash inflows, starting with year 1, of $8,000, $13,400, $18,600, $33,100 and finally in year five, $37,900. What is the profitability index if the discount rate is 11 percent?

Group of answer choices

1.02

1.07

0.98

0.92

5.) Which one of the following bonds is the least interest rate sensitive?

Group of answer choices

3-year, 0 percent coupon

6-year, 6 percent coupon

6-year, 0 percent coupon

3-year, 6 percent coupon

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