What is the NPV for a project if its cost of capital is $12$ percent and its initial after$-$tax cost is $$5,000,000$ and it is expected to provide after$-$tax operating cash flows of $$1,800,000$ in year $1,$$$1,900,000$ in year $2,$$$1,700,000$ in year $3,$ and $($$$1,300,000)$ in year $4?$

A$)-$$$1,494,336$

B$)$ $$158,011$

C$)-$$$158,011$

D$)$ $$3,505,664$

The minimum return that must be earned on a project in order to leave the firm's value unchanged is

A$)$ the internal rate of return

B$)$ the interest rate

C$)$ the cost of capital

D$)$ the compound rate

What is the profitability index of a project that has an initial cash outflow of $$600,$ an inflow of $$250$ for the next $3$ years and a cost of capital of $10$ percent?

A$)0\mathrm{.}667$

B$)2\mathrm{.}036$

C$)1\mathrm{.}036$

D$)2\mathrm{.}739$

If a project's IRR is greater than zero, the project should be accepted.

Projects having higher cash inflows in the early years tend to be less sensitive to changes in the cost of capital and are therefore often acceptable at higher discount rates compared to projects with higher cash inflows that occur in the later years.

A firm with a cost of capital of $13$ percent is evaluating three capital projects. The internal rates of return are as follows:

$\backslash$table$[[$Project$,\backslash$table$[[$Internal Rate$],[$of Return$]]],[1,12\%$