Question 7 (5 points) Saved Under what conditions can we expect IRR and NPV to always be consistent in accepting or rejecting projects? The projects have standard cash flows. The projects are independent. The projects involve short-term investments. All of the above. Only a and b above. Question 8 (5 points) Moira's World Music is currently considering a project that will produce cash inflows of $3,500 a year for 3 years followed by $2,000 a year for 2 more years. The cost of the project is $12,000. What is the profitability index if the discount rate is 8 percent? 0.99 1.93 0.46 2.300 Question 9 (5 points) A four-year project is expected to generate revenues of $800,000, total variable costs of $200,000, and fixed costs each year of $450,000. The annual depreciation is $100,000 and the tax rate is 30 percent. What is the annual operating cash flow? $270,000 $48,000 $129,000 $135,000 Question 11 (5 points) A project requires an initial investment of $75,000 and has cash inflows of $12,000 each year for 20 years. What is the profitability index if the required return is 12%? 1.195 0.826 1.065 1.238 Question 12 (5 points) Three years ago your firm bought an asset that is being depreciated on a straight-line basis to zero over a 4- year life. The asset cost $160,000 and is being sold for $10,000 today. The tax rate is 30%. What is the after- tax cash flow from the sale of the asset? $87,000 $10,000 $19,000 $8,500