1. Rock Motors is considering a project with the following expected cash flows: Year

CashFlow

0 -$700 million

1 +200 million

2 +170 million

3 + 225 million

4 + 300 million

1. Calculate the NPV of the project if the required rate of return is 8%. Should the project be accepted? (5 marks)
2. Calculate the IRR of the project (5 marks)

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FIN2102 Test 2 (April 21) question paper View MathType Grammarly Picture Format Tell me Home Insert Draw Design Layout References Mailings Review Share Comments H v v r T Calibri (Bo... 12 ~ Aa A ab A B I U ab X X APAA AaBbCcDdE AaBbCeDdE AaBDCD AaBbc , Paste = = = Normal No Spacing Heading 1 Title Dictate V Styles Pane Sensitivity Open Grammarly 2 1 2 3 6 9 10 11 12 13 14 15. 16 17 18 N Present Value Tables Formula: PV = 1/(1+1) n/ 1 3 0.8638 4 5 5 6 0.8219 0.4817 CO 1% 2% 3% 4% 5% 69 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9903 0.9612 0.9426 0.9246 0.9070 0.9900 097060 09423 0.9151 0.8890 0.8396 09610 0.9238 0.8885 08548 0.8227 0 7921 09515 0.9057 0.8626 0.7835 0.7473 0.9420 0.8880 0.8375 0.7903 0.7462 0.7050 0.9327 0.8706 0.8131 0.7599 0.7107 0.6651 0.9235 0.8535 0.7894 0.730% 0.6768 0.6274 0.9143 0.8368 0.7664 0.7026 0.6446 0.5919 0.9053 0.8203 0.7441 0.6756 0.6139 0.5584 08963 0 8043 0.7224 0.6496 0.5847 0.5268 0.8874 0.7885 0.7014 0.6246 0.5568 04970 0.8787 0.7730 0.6810 0.6006 0.5303 0.4688 0.8700 0.7579 0.6611 0.5775 0.5051 0.4423 0.8613 0.7430 0.6419 0.5553 0.4810 0.4173 0.8528 0.7284 0.6232 0.5339 0.4581 0.3936 0.9444 0.7142 0.6050 0.5134 0.4363 0.3714 0.8360 0.7002 0.5874 04936 0.4155 0.3503 08277 0 6864 0.5703 0.4746 0.3957 0 3305 08195 06730 0.5537 04564 0 3769 0.3118 0.8114 0.6598 0.5375 0.4388 0.3589 0.2942 0.8034 0.6168 0.5219 0.4220 0.3418 0.2775 0.7954 0.6342 0.5067 0.4057 0.3256 0.2618 0.7976 0.6212 0.4919 0.3901 0.3101 0.2470 0.7798 0.6095 0.4776 0.3751 0.2953 0.2330 0.7720 0.5976 04637 0.3607 0.2812 02198 0.7644 0.5859 0.4502 0.3468 0.2678 0 2074 0.7568 0.5744 0.4371 0.3395 0.2551 0.1956 0.7493 0.5631 0.4243 0.3207 0.2429 0.1846 0.7419 0.5521 0.4120 0.8083 0.2314 0.1741 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 7% 8% 9% 0.9346 0.9259 0.9174 0.8734 0.8573 0.8417 0.8163 07938 0.7722 07679 07350 0 70R4 0.7130 0.6808 0 6499 0.6663 0.6302 0.5963 0.6227 0.5835 0.5470 0.5820 0.5403 0.5019 0.5439 0.5002 0.4604 0.5083 0.4632 0.4224 0.4751 0.4289 0 3875 04440 0 3971 0 3555 0.4150 0.3677 0.3262 0.3878 0.3105 0.2992 0.3624 0.3152 0.2745 0.3387 0.2919 0.2519 0.3166 0.2703 0.2311 0.2959 0 2502 0 2120 0.2765 02317 0 1945 0.2584 0 0 2145 0 17R4 0.2415 0.1987 0.1637 0.2257 0.1839 0.1502 0.2109 0.1703 0.1379 0.1971 0.1572 0.1264 0.1942 0.1460 0.1160 01722 0 1352 01064 0.1609 0 1252 0.0976 0.1504 0.1159 0.0895 0.1406 0.1073 0.0822 0.1314 0.0991 0.0751 10% 11% 12% 0.9091 0.9009 0.8929 0.8264 0.8116 0.7972 0.7513 0.7312 0.7118 0 6830 0.6587 0.6355 0.6209 0.5935 0.5674 0.5645 0.5346 0.5066 0.5132 0.4523 0.4665 0.4339 0.4039 0.4241 0.3909 0.3606 0.3855 0.3522 0.3220 0.3505 03173 0.2875 03186 0.2858 0.2567 0.2897 0.2575 0.2292 0.2633 0.2320 0.2046 0.2394 0.2090 0.1827 0.2176 0.1883 0.1631 0.1978 0.1696 0.1456 0 1799 0.1528 0 1300 0 1635 0.1377 0.1161 0 1486 0.1240 0.1037 0.1351 0.1117 0.0926 0.1228 0.1007 0.0826 0.1117 0.0907 0.0738 0.101: 0.0812 0.0659 0.0923 0.0736 0.0588 O 0839 0.0663 0.0525 0.0763 0.0597 0.0469 0.0693 0.0538 0.0419 0.0630 0.0485 0.0374 0.0573 0.0437 0.0334 13% 0.9850 0.7831 0.6931 0.6133 0.5428 0.4803 0.4251 0.3762 0.3329 0.2946 0.2607 0.2307 0.2012 0.1807 0.1599 0.1415 0.1252 0.1108 0.0981 0,0868 0.0768 0.0680 0.0601 0.0532 0.0471 0.0417 0.0369 0.0826 0.0289 0.0256 14% 15% 0.9772 0.3696 0.7695 0.7561 0.6750 0.6575 0.5921 0.5718 0.5194 0.4972 0.4556 0.4323 0.3996 0.3759 0.3506 0.3269 0.3075 0.2843 0.2697 0.2472 0.2366 0.2149 02076 0.1869 0.1821 0.1625 0.1597 0.1419 0.1401 0.1229 0.1229 0.1069 0.1078 0.0929 0.0946 0.0808 0.0829 00703 0.0728 0.0611 0.0638 0.0531 0.0560 0.0162 0.0491 0.0402 0.0431 0.0349 0.0378 0.0304 0.0331 0 0264 0 00291 0.0230 0.0255 0.0200 0.0224 0.0174 0.0196 0.0151 9 . 12 A 2014 www.o.com present tables Page 5 of 6 799 words English (United States) O Focus E E -- + 122% AutoSave OFF 9 a COP ... Home Insert Draw Design Layout References Mailings Share Comments FIN2102 Test 2 (April 21) question paper Review View MathType Grammarly Picture Format Tell me vv r 21 T AaBbCcDdE AaBbCcDde AaBbCcDc AaBbc . b , =v Styles H v Calibri (Bo... LO 12 ' Aa Ao ab A Paste B Normal I Title U ab X X ALAA No Spacing Heading 1 Dictate V Sensitivity Pane Open Grammarly 2 6 tuli 9 10 12 13 14 15. 16 17 18 I L Present Value Annuity Tables Formula: PV = (1-1/(1+i)"1/i n/ 1% 1 09901 2 1.9704 3 29410 4 3.9020 5 4.85 34 6 5.7955 7 6.7282 8 7.6517 9 8.5660 10 9.4713 11 10.3676 12 11.2551 13 12.1337 14 13.0037 15 13.8651 16 14.7179 17 15 5628 18 16.3985 19 17 2260 20 18.0456 21 18.8570 22 19.6604 23 20.4558 24 21.2434 25 22.0232 26 22.7952 27 23.5590 28 24.3164 29 25.0658 30 25.8077 298 3% 496 5% 696 7% 8% 996 09804 09709 09615 09524 09484 09846 0.9259 09174 1.9416 1.0135 1.8861 1.8504 1.8194 1.8080 1.7833 1.7501 2 RR 28286 2.7751 27292 2.6780 26949 2.5771 25913 3.8077 3.7171 3.6209 3.5460 3.4651 3.3872 3.3121 3.2997 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3.9927 3.8897 5.6014 5.4172 5.2421 5.0757 4.9173 4.7665 4.6229 4.4859 6.4720 6.2303 6.0021 5.7864 5.5824 5.3893 5.2064 5.0330 7.3255 7.0197 6.7327 6.4632 6.2098 5.9713 5.7466 5.5348 8.1622 7.7861 7.4353 7.1078 6.8017 6.5152 6.2469 5.9952 8.9820 8.5302 8.1109 7.7217 7.3001 7.0236 0.7101 6.4177 9.7860 9.2526 8.7605 8.3064 7.8869 7.4987 7.1390 6.3052 10.5753 9.9500 9.3951 8.8633 8.388 7.9127 7.5361 7.1607 11.3484 10.G350 9.9856 9.3936 8.8527 8.3577 7.9038 7.4869 12.1062 11.2961 10.5631 9.8980 9.2950 8.7455 8.2412 7.7862 12 8493 119379 11 1184 10 97979 7122 9.1079 R5595 8 0607 13.5777 12.5611 11.6523 10.8378 10.1009 9.1166 3.8511 8.3126 14 2919 13.1661 12 1657 11 2741 10 4773 9.7692 9.1216 85436 14.9920 13.7535 12.6598 11.6896 10.8276 10.0591 9.3719 8.7556 15.6785 14 8288 13.1899 12 0859111581 10 9356 9.6086 80501 16.3514 14.8775 13.5903 12.4622 11.4600 10.5940 9.8.181 9.1285 17.011215 4150 14.0292 12 8212 11.7641 10.8355 10.0168 9.2922 17.6580 15.9369 14.4511 13.1630 12.0416 11.0612 10.2007 9.4424 18.2922 16.4486 14.8568 13.4885 12.3034 11 2722 10.3711 9.5802 18.9139 16.9355 15.2470 13.7986 12.5504 11.4693 10.5288 9.7066 19.5235 17.4131 15.6222 14.0939 12.7834 11.6536 10.6748 9.822G 20.1210 17.8768 15.9a28 14.3752 13.0032 11.8258 10.8100 9.9290 20.7069 18.3270 10.3296 14.6430 13.2105 11.9867 10.9352 10.02GG 21.2813 18.7641 16.6631 14.8981 13.4062 12.1371 11.0511 10.1161 21.8444 19.1885 16.9837 15.1411 13.5907 12.2777 11.1594 10.1983 22.9965 19.6004 17.2920 15.3725 13.7642 12.1090 11.2578 10 2757 1096 11% 12% 1396 14% 15% 09091 09009 0 8929 O RASO 08772 08696 1.7355 1.7125 1.6001 1.641 1.6467 1.6257 2 4869 24497 2.4018 2.9612 28216 2 2892 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522 4.3553 4.2305 4.1114 3.9975 3.8887 3.7845 4.8684 4.7122 4.5638 4.4226 4.2883 4.2004 5.3349 5.1461 4.9676 4.7988 4.6389 4.4873 5.7590 5.5 370 5.3282 5.1317 4.9464 4.7716 6.1446 5.8-592 5.0502 5.4262 5.2101 5.0188 6.4951 6.2065 5.9377 5.6809 5.4527 5.2337 6.8137 6.4924 6.1944 5.9170 5.600S 5.4200 7.1034 6.7499 6.4235 6.1218 5.8424 5.5831 7.3667 6.9319 6.6282 6.3025 6.0021 5.7215 7 6061 71909 6 8100 6 4624 6 1422 5.8474 7.8297 7.3 792 6.9/10 6.6089 6.2651 5.9512 80216 75488 7.1196 67291 68729 60472 8.2014 7.2016 7.2497 6.8999 6.4674 0.1280 & 3649 7.8993 7.3658 6.RO 6.5504 6. 1982 8.5136 7.9633 7.4604 7.0248 6.6231 6.2593 8.6487 80751 7.5620 7 1016 6.6870 6.3125 8.7715 8.7715 8.1757 7.6446 6.7420 6.3587 8.8832 8 2664 7.7184 7.2297 6.7921 6.3983 8.9847 8.3481 7.7843 7.2829 6.8351 6.4338 9.0770 7.8431 7.3300 6.8729 6.4641 9.1609 8.48BI 7.8957 7.3717 6.9061 6.4906 9.2372 8.5478 7.9426 7.4086 6.9352 6.5135 9.3066 8.6016 7.9844 7.4412 6.9607 6.5335 9.3690 8.6301 8.0218 7.4701 6.9830 G.5509 9.4269 8.6998 8.0552 7.4957 7.0027 6.5660 7.1695 8.4227 2014 www.tyschools.com presente nuity tables Page 6 of 6 799 words English (United States) O Focus E E -- + 122%