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Please answer all questions and show step by step using BA II calculator. Question 1 - NPV 3 point): The Seattle Corporation has been presented

Please answer all questions and show step by step using BA II calculator. image text in transcribed
Question 1 - NPV 3 point): 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, S35,000 per year in Years 5 through 9, and $40,000 in Year to. This investment will cost the firm $150,000 today, and the firm's required rate of retum is 10 percent. What is the NPV for this investment? Question 2 - NPV 3 point]: Tapley Acquisition Inc. is considering the purchase of Target Company. The acquisition would require an initial investment of S190,000, but Tapley's after-tax net cash flows would increase by $30,000 per year and remain at this new level forever. Assume the required rate of return is 15 percent. Should Tapley buy Target? Question 3 - IRR 13 point): Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 3 4 5 Cash flows $9,500 $2,000 $2,025 $2,050 $2,075 S2 .100 Question 4 - Payback Period 13 point: Stern Associates is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 4 5 Cash flows $1,100 $300 $310 $320 $340 $340 Question 5 - Discounted Payback Period [4 points]: Femando Designs is considering a project that has the following cash flow data. The required rate of return is 10 percent. What is the project's discounted payback? Year 0 1 2 3 Cash flows -5900 $500 $500 $500 Question 6 - Mutually Exclusive Projects (4 points]: Two projects being considered are mutually exclusive and have the following projected cash flows: Yes A LES o 50,000 350.000 1 15.105 15.25 65.625 0 4 15425 15.125 2.500 If the required rate of return on these projects is 10 percent, which would be chosen and why

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