Safari File Edit View History Bookmarks Window Help newconnect.mheducation.com Wook 6: Quiz Weeks Devry Student Portal Help Save & Exit Week 5: Quiz 0 An Investment project provides cash inflows of $1,225 per year for eight years. a. What is the project payback period if the initial cost is $4,000? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the project payback period if the initial cost is $5,050? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the project payback period if the initial cost is $10,800? (Enter o If the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Iyears a. Payback period b. Payback period c. Payback period years Prev 1 of 4 Next > Saved Week 5: Quiz 0 Helps A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow -$ 158,000 o 58,000 NM 81,000 65,000 What is the project's IRR? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return If the required return is 15 percent, should the firm accept the project? Prey 2 of 4 Week 5: Quiz i Saved For the glven cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0 -$ 150,000 66,000 73,000 57,000 a. At a required return of 10 percent, what is the NPV of the project? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) b. At a required return of 20 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV INPV Week 5: Quiz i Saved Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 17 percent. Year Project M --$145,000 64,000 82,000 73,000 59,000 ! Project N -$360,000 150,000 185,000 135,000 115,000 a. What is the IRR for each project? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? Project M Project N Project M Project N C. Accept project