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Question 13 (4 points) The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $43,000 per year in

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Question 13 (4 points) The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $43,000 per year in Years 1 through 4, and $125,000 in Year 5. This investment will cost the firm $150,000 today, and the firm's cost of capital is 13 percent. What is the NPV for this investment? Round it to a whole dollar. Your Answer: Answer Question 14 (4 points) The Uptown Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $53,000 per year in Years 1 through 4, and $111,000 in Year 5. This investment will cost the firm $235,000 today, and the firm's cost of capital is 12 percent. What is the payback period for this investment? Round it to two decimal places, e.g., 3.46. Your Answer: Question 18 (4 points) Johnson Jets is considering two mutually exclusive projects. Project A has an up-front cost of $124,000 (CFO - -124,000), and produces positive after-tax cash inflows of $30,000 a year at the end of each of the next six years. Project B has an up-front cost of $59,000(CF, --59,000) and produces after-tax cash inflows of $20,000 a year at the end of the next four years. Assuming the cost of capital is 10.5%, 1. Compute the equivalent annual annuity of project A in box 1. Round the EAA to a whole dollar without the dollar sign or comma, e.g., 3452 (non-negative number) 2. Compute the equivalent annual annity of project B in box 2. The same format as box 1. 3. Decide which project to undertake in box 3, either Project A or Project B. Blank #1 A Blank # 2 PA Blank # 3

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