Question
Use the information to answer the following questions. A company is analyzing an independent project, S, whose cash flows are shown below: Year0 Year1 Year2
Use the information to answer the following questions. A company is analyzing an independent project, S, whose cash flows are shown below:
Year0 Year1 Year2 Year3 Year4
CashFlow -100 60 35 30 20
The company's cost of capital is 9%, and it can get an unlimited amount of capital at that cost.What is the discounted payback period for Project S?
Select one:
a.2.99 years
b.2.67 years
c.2.33 years
d.2.76 years
e.3.20 years
Continued from previous question. What is the internal rate of return (IRR) for Project S?
Select one:
a.20.84%
b.15.34%
c.19.93%
d.18.54%
e.12.46%
Continued from previous question. What is the Net Present Value (NPV) of Project S?
Select one:
a.$12.34
b.$6.42
c.$21.84
d.$20.72
e.$13.93
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