1. You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20% p.a. compounded annually. The IRR for this project is closest to:

   a		20.00%
   b		25.85%
   c		15.60%
   d		18.95%

2. What is the payback period for an investment with an initial outlay of $1m that has the following net cash inflows?: Year 1 $400,000, Year 2 $200,000 Year 3 $200,000, Year 4 $400,000

a		3.5 years
b		3.2 years
c		4 years
d		3 years

3. Consider the following project:

Year 0 Cash Flow	Year 1 Cash Flow	Year 2 Cash Flow	Year 3 Cash Flow	Year 4 Cash Flow	Discount Rate (per year, compounded annually)
-73	30	30	30	30	15%

The NPV of project is closest to:

		a 12.6
		b 23.3
		c 15.0
		d 12.0