Question 2 1 pts The term structure of the interest rate is shown below. Term 1 year 2 years 3 years 5 years 20 years Rates (EAR%) 4.00% 4.25% 4.5% 4.78% 5.2 % What is the NPV of this project if the initial cost is $1,500 and it pays back $800 at the end of year one $600 at the end of year three, and $400 at the end of year five? Note: Round to 2 decimal places. 111.72 101.72 O 115.72 106.72 D Question 3 1 pts Use the information given to you in question 2. The NPV of a project whose initial investment is $2,700, and has payments of $1,000 at the end of years one, three, and five, is closest to: Note: Round to 2 decimal places. -70.38 23.45 137.11 -58.38 D Question 4 1 pts Which of the following is the main question that companies ask when they use the IRR rule to make an accept/reject decision on a project? Is this project's return higher or lower than the opportunity cost of capital? How long will this project take to return more than its initial investment? If I have a limited amount of capital, which project should I choose in order to increase the value of my firm? Are the costs of this project bigger or smaller than its benefits? MacBook Air