Use the following information for Questions 16 20.

Please analyze the following project. All cash flows are in millions, they are assumed to be after-tax and they occur evenly over each year. The client requires a 20% rate of return.

Year	Cash Flow	Discounted Cash Flows
0	-4,500
1	1,500
2	1,700
3	4,500
IRR
NPV

q17.The discounted payback for this Project is (given a 20% discount rate):

Multiple Choice

• The Project has a discounted payback of 3.59 years

• The Project has a discounted payback of 2.79 years

• The Project has a discounted payback of 3.59 years

• The Project has a discounted payback of 1.79 years

q18.The NPV for this Project is (given a 20% discount rate):

Multiple Choice

• The Project has an NPV of $415.25

• The Project has an NPV of $414.50

• The Project has an NPV of $257.65

• The Project has an NPV of $534.72