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of $4.500 and the following het present value of a project that has an initial return is 15.35 percent $ 31,900 Year Cash flows $12.500

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of $4.500 and the following het present value of a project that has an initial return is 15.35 percent $ 31,900 Year Cash flows $12.500 19,700 1535 10,400 ASU 13.25 B-52,784.62 C.-52.481.53 D. $52.311.08 E 566,416.75 h ow of 55.700 in years. The projects 6. A project will produce cash flows cost is $9.500. What is the net present value of this project if the required to return is 16 percent A.-5311.02 B. $2,168 02 C. $4,650 11 D. 59,188.98 E $21.168.02 7. Day Interiors is considering a project with the following cash flows. What is the IRR of this project? Year Cash Flow -$114,600 35,900 50.800 45,000 A 6.42 percent B. 7.03 percent C. 7.48 percent D. 8.22 percent E. 8.56 percent 8. You are considering two independent projects both of which have been assigned a discount rate of 15 percent. Based on the profitability index, what is your recommendation concerning these projects? Project A Project B Year Cash Flow Year Cash Flow 0 $46,000 0 $50,000 1 $32,000 1 $18,000 2 $27,000 2 $54,000 A. You should accept both projects. B. You should reject both projects. C. You should accept project A and reject project B. D. You should accept project B and reject project A. E. You should accept project A and be indifferent to project B

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