Use the information in the table below for the following 5 questions.

A capital investment project is estimated to have the following after-tax cash flows, by year:

0	1	2	3	4
-$50,000	$15,000	$17,500	$17,500	$25,000

The company utilizes a discount rate of 20% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year.

The NET PRESENT VALUE for the project shown above is:

Select one:

a. -$4,789

b. -$3,163

c. $0

d. -$10,958

e. -$5,672

Question 8:

Use the information in the table below for the following 5 questions.

A capital investment project is estimated to have the following after-tax cash flows, by year:

0	1	2	3	4
-$50,000	$15,000	$17,500	$17,500	$25,000

The company utilizes a discount rate of 20% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year.

The INTERNAL RATE OF RETURN for the project shown above is:

Select one:

a. 15.41%

b. 14.27%

c. No IRR

d. 3.92%

e. 16.88%

Question 9:

Use the information in the table below for the following 5 questions.

A capital investment project is estimated to have the following after-tax cash flows, by year:

0	1	2	3	4
-$50,000	$15,000	$17,500	$17,500	$25,000

The company utilizes a discount rate of 20% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year.

The PROFITABILITY INDEX for the project shown above is:

Select one:

a. 0.93

b. 0.78

c. 1.60

d. 0.89

e. 2.15

Question 10:

Use the information in the table below for the following 5 questions.

A capital investment project is estimated to have the following after-tax cash flows, by year:

0	1	2	3	4
-$50,000	$15,000	$17,500	$17,500	$25,000

The company utilizes a discount rate of 20% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year.

The PAYBACK for the project shown above is:

Select one:

a. 2.16 years.

b. 3.15 years.

c. 3.00 years.

d. Does not pay back.

e. 3.66 years.

Question 11:

Use the information in the table below for the following 5 questions.

A capital investment project is estimated to have the following after-tax cash flows, by year:

0	1	2	3	4
-$50,000	$15,000	$17,500	$17,500	$25,000

The company utilizes a discount rate of 20% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year.

The DISCOUNTED PAYBACK for the project shown above is:

Select one:

a. 4.86 years.

b. 3.96 years.

c. Does not pay back.

d. 2.27 years.

e. 3.66 years.