Questions are in the attachment

What is the net present value of a project with an initial cost of $36,900 and cash inflows of $13,400, $21,600, and $10,000 for Years 1 to 3, respectively? The discount rate is 13 percent.

$797.22

$204.36

$1,195.12

$1,350.49

$287.22

2-

Maxwell Software, Inc., has the following mutually exclusive projects.

Year		Project A		Project B
0		$23,000		$26,000
1		13,500		14,500
2		10,000		11,000
3		3,200		10,000

a-1.	Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

	Payback period
Project A	years
Project B	years

a-2.

Which, if either, of these projects should be chosen?

	Project A
	Project B
	Both projects
	Neither project

b-1.	What is the NPV for each project if the appropriate discount rate is 17 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	NPV
Project A	$
Project B	$

b-2.

Which, if either, of these projects should be chosen if the appropriate discount rate is 17 percent?

	Project A
	Project B
	Both projects
	Neither project

3-

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,160,000 in annual sales, with costs of $855,000. The tax rate is 34 percent and the required return is 10 percent.

What is the projects NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV

$

4-

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.52 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project is estimated to generate $2,020,000 in annual sales, with costs of $715,000. The tax rate is 30 percent and the required return is 16 percent. The project requires an initial investment in net working capital of $240,000, and the fixed asset will have a market value of $290,000 at the end of the project.

What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

Years	Cash Flow
Year 0	$
Year 1	$
Year 2	$
Year 3	$

What is the NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV

$

What is the net present value of a project with an initial cost of $36,900 and cash inflows of $13,400, $21,600, and $10,000 for Years 1 to 3, respectively? The discount rate is 13 percent. $797.22 $204.36 $1,195.12 $1,350.49 $287.22 2- Maxwell Software, Inc., has the following mutually exclusive projects. Year 0 1 2 3 Project A Project B -$23,000 -$26,000 13,500 10,000 3,200 14,500 11,000 10,000 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B Payback period years years a-2. Which, if either, of these projects should be chosen? Project A Project B Both projects Neither project b-1. What is the NPV for each project if the appropriate discount rate is 17 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B NPV $ $ b-2. Which, if either, of these projects should be chosen if the appropriate discount rate is 17 percent? Project A Project B Both projects Neither project 3- Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million. The fixed asset will be depreciated straightline to zero over its three-year tax life, after which it will be worthless. The project is estimated to generate $2,160,000 in annual sales, with costs of $855,000. The tax rate is 34 percent and the required return is 10 percent. What is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $ 4- Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.52 million. The fixed asset will be depreciated straightline to zero over its three-year tax life. The project is estimated to generate $2,020,000 in annual sales, with costs of $715,000. The tax rate is 30 percent and the required return is 16 percent. The project requires an initial investment in net working capital of $240,000, and the fixed asset will have a market value of $290,000 at the end of the project. What is the project's Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Years Year 0 Year 1 Year 2 Year 3 Cash Flow $ $ $ $ What is the NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV $