What is the net present value of a project that has an initial cash outflow of $-11,400, at time 0, and the following cash flows for years 1-4? The required return is 10.0%. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO THE NEAREST DOLLAR (e.g. 1250).

Year Cash Flows

1 $4,500

2 $4,350

3 $5,400

4 $7,250

Your Answer:

Question 1 options:

Answer

Question 2 (1 point)

A project has cash flows of -$163,500, $60,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 8.0 percent. What is the profitability index? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ENTER YOUR ANSWER TO TWO DECIMAL PLACES (e.g. 25.75).

Your Answer:

Question 2 options:

Answer

Question 3 (1 point)

The Dry Dock is considering a project with an initial cost of $120,000. The projects cash inflows for years 1 through 3 are $40,000, $65000, and $38000, respectively. What is the IRR of this project?

Question 3 options:

	9.82 percent
	9.35 percent
	9.68 percent
	8.56 percent
	10.26 percent

Question 4 (1 point)

Given the following cash flows for a proposed capital investment project, calculate the payback period.

Year	Cash Flow
0	-$40,000
1	15,000
2	15,000
3	15,000
4	15,000
5	10,000
6	10,000

Question 4 options:

	2.67 years
	4.33 years
	3.33 years
	5.50 years