Question
PLEASE SHOW ALL WORK 2. What is the IRR of a project that costs $100,000 and returns $50,000 annually for three years, starting in year
PLEASE SHOW ALL WORK
2. What is the IRR of a project that costs $100,000 and returns $50,000 annually for three years, starting in year 1, if the opportunity cost of capital is 14%?
A. 25.8%
B. 23.4%
C. 20.2%
D. 14.0%
3. What is the profitability index of a project that costs $100,000 and returns $50,000 annually for three years, starting in year 1, if the opportunity cost of capital is 14%?
A. 0.16
B. 1.60
C. 0.08
D. 0.20
7. What is the approximate IRR of a project that costs $50,000 and provides cash inflows of $10,000 annually for eight years?
A. 0.57% B. 2.00% C. 11.8% D. 16.9%
9. What is the approximate net present value for a project that costs $50,000 and provides cash inflows of $10,000 annually for eight years, starting in year 3, and has an opportunity cost of capital of 15%?
A. -$2,345 B. -$5,127
C.-$16,069
D. $5,127
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