QUESTION 9

1. Use the following information for this and the next question.
3. Suppose a project costs $1,000 and produces cash flows of $200 over each of the next three years and a cash flow of $250 for each of the years four to six.
5. What is the IRR of the project?
6. A.10.0%
7. B.8.8%
8. C.15.2%
9. D.11.7%
10. E.24.3%
11. F.9.2%

2 points

QUESTION 10

1. What is the NPV of the project at 8 percent required rate of return?
2. A.$350
3. B.$0
4. C.$90
5. D.$249
6. E.$160
7. F.$27

QUESTION 15

1. Suppose a project costs $222,000 at start up, generates a cash flows of $560,000 in year one, and costs $350,000 in year 2.There are no cash flows after year 2.
3. What is the NPV of the project at 25 percent required rate of return?
4. A.1,668.64
5. B.306.24
6. C.1,854.29
7. D.1,611.11
8. E.2,000.00
9. F.2,799