Q1:

A project has the following cash flows:

Project

Year Cash Flows

0 -$4,450.00

1 $2,134.00

2 $2,134.00

3 $2,134.00

4 $2,134.00

Its cost of capital is 10 percent. What is the projects discounted payback period?

Group of answer choices

2.07 years

2.47 years

1.87 years

2.27 years

2.67 years

Q2:

Green Grocers is deciding among two mutually exclusive projects. The two projects have the following cash flows:

Year Project A CF Project B CF

0 -$54,419 -$26,295

1 $10,322 $7,286

2 $9,392 $16,817

3 $21,091 $28,094

4 $15,933 $17,066

The companys weighted average cost of capital is 11.3 percent (WACC = 11.3). What is the

What is the net present value (NPV) of the project with the highest internal rate of return (IRR)?

Should that project be accepted?

Group of answer choices

$27,324.46; Yes

$29,324.46; Yes

$27,324.46; No

$25,324.46; Yes

$23,324.46; No