Questions 20-24 refer to the following table. required return (WACC) 0.14 0.14 0.14 0.14 0.14 0.14 Year 0 1 2 3 4 5 6 projected earnings after tax (250,000) 118,256 80,824 141,069 181,916 193,095 228,476 (250,000) 103,733 62,191 PV of cashflow by year 95,218 107,709 100,287 104,091 20. This project's IRR IS: A. greater than its WACC B. equal to $323,299 C. both A and B D. none of these 21. If this project's required return increased to 16%, its A. NPV would fall by 2% B. IRR would decrease C. IRR would increase D. none of these 22. This project's Profitability Index (Pi) says that for every dollar of initial investment, we would expect to A. only recover $0.80 B. make the $1 back plus $0.29 C. make the $1 back plus $1.29 D. none of these 23. What is the value of this project in today's dollars with a 14% cost of capital? A. $323,229 B. $323,229 + $250,000 C. $323,229 - $250,000 D. none of these 24. Due to discounting, it is clear that higher discount rates A. favor projects with quicker payouts B. favor projects with large net benefits, but not received until much later in the future C. both A and B D. none of these