Questions 9 and 10 only.

Project B for reference.

Project E has the following cash flows: (remember the year zero number is negative) Year 0 Year 1 Year 2 Year 3 Year 4 Cash flows -$1,100,000 $330,000 $440,000 $550,000 $550,000 6. Using an 8% cost of capital, what is the net present value of this project? Assume that Project E is mutually exclusive to Project B above. Using net present value to make the decision -- should this project be accepted over Project B? 7. Using an 8% cost of capital, what is the profitability index for this project? Assume that Project E is mutually exclusive to Project B above. Using the profitability decision model to make the decision -- should this project be accepted over Project B? 8. Using an 8% cost of capital, what is the internal rate of return for this project? Assume that Project E is mutually exclusive to Project B above. Using the internal rate of return decision model to make the decision -- should this project be accepted over Project B? 9. Using an 8% cost of capital, what is the payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the payback decision model to make the decision -- should this project be accepted over Project B? 10. Using an 8% cost of capital, what is the present value payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the present value payback decision model to make the decision -- should this project be accepted over Project B? Project B has the following cash flows: (remember the year zero number is negative) Year 0 Year 1 Year 2 Year 3 Year 4 Cash flows -$1,100,000 $660,000 $440,000 $330,000 $220,000