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Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.5 and 3.5 years, respectively.

Time: 0 1 2 3 4 5 6
Cash flow $4,600 $1,160 $2,360 $1,560 $1,560 $1,360 $1,160

Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)

Payback

years

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.

Time: 0 1 2 3 4 5 6
Cash flow $7,600 $1,190 $2,390 $1,590 $1,590 $1,390 $1,190

Use the NPV decision rule to evaluate this project.(Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

NPV $

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.

Time: 0 1 2 3 4 5 6
Cash flow $7,300 $1,120 $2,320 $1,520 $1,520 $1,320 $1,120

Use the PI decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

PI

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 and 3.5 years, respectively.

Time: 0 1 2 3 4 5
Cash flow $240,000 $66,300 $84,500 $141,500 $122,500 $81,700

Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)

Payback

years

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 and 3.5 years, respectively.

Time: 0 1 2 3 4 5
Cash flow $236,000 $65,900 $84,100 $141,100 $122,100 $81,300

Use the discounted payback decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Discounted payback years

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