Question 6 (1 point) A project costs $50,000 and is expected to return profits of $10,000 per year. Calculate the payback period to 2 decimal places. Your Answer: Answer Question 7 (1 point) Acme Industries is considering a project that will cost $200,000 and generate returns of $45,000 at the end of year 1, $85,000 at the end of year 2, $65,000 at the end of year 3 and $30,000 at the end of year 4. Calculate the NPV of the project using a cost of capital of j=8.5%. Round your answer to the nearest dollar. Your Answer: Question 4 (1 point) You are considering an investment that will cost $250,000 and generate returns of $60,000 per year for the next 5 years. Calculate the NPV of the investment using a cost of capital of j1=7.0%. Round your answer to the nearest dollar. Your Answer: Answer Question 5 (1 point) You are considering an investment that will cost $15,000 and generate returns of $4,000 at the end of year 1, $5,000 at the end of year 2, $6,000 at the end of year 3 and $3,000 at the end of year 4. Calculate the NPV of the investment using a cost of capital of j1=6.0%. Round your answer to the nearest dollar. Your Answer: Question 2 (1 point) Calculate the payback period for a project that costs $60,000 and returns $22,000 at the end of each year. Express your answer in years rounded to 2 decimal places. Your Answer: Answer Question 3 (1 point) A potential project has a net present value (NPV) of $28,356. This amount includes the initial cash outlay of $30,000. The correct decision would be to: proceed with the project because the NPV is positive. cancel the project because the NPV is lower than the initial cash outlay. Question 1 (1 point) An investor requires a return of 15% on projects that she invests in. She has looked at a potential project and calculated that the internal rate of return (IRR) for the project is 12%. The correct decision would be to: not invest in the project because the IRR is lower than her required rate of return. proceed with the project because the IRR is still larger than 10%. proceed with the project because the IRR is smaller than her required rate of return.