Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.4 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,794,300, $1,847,600, $1,816,000, and $1,269,500 over these four years, what is the projects average accounting return (AAR)?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What is the payback period for the following set of cash flows?(Round your answer to 2 decimal places, e.g., 32.16.)

Year	Cash Flow
0	$	4,900
1		1,250
2		1,450
3		1,850
4		1,350

An investment project provides cash inflows of $615 per year for eight years.

What is the project payback period if the initial cost is $1,750?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the project payback period if the initial cost is $3,400?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, for the next four years, respectively. The discount rate is 15 percent.

What is the discounted payback period for these cash flows if the initial cost is $6,300?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

What is the discounted payback period for these cash flows if the initial cost is $8,400?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

What is the discounted payback period for these cash flows if the initial cost is $11,400?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

Payback period

years

What is the project payback period if the initial cost is $5,100?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:

Year	Cash Flow
0	$	27,500
1		11,500
2		14,500
3		10,500

If the required return is 16 percent, what is the IRR for this project?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows:

Year	Cash Flow
0	$	27,000
1		11,000
2		14,000
3		10,000

What is the NPV for the project if the required return is 10 percent?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV

$

At a required return of 10 percent, should the firm accept this project?

No

Yes

What is the NPV for the project if the required return is 26 percent?(Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV

$

At a required return of 26 percent, should the firm accept this project?

A project that provides annual cash flows of $17,400 for ten years costs $80,000 today.

What is the NPV for the project if the required return is 9 percent?(Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

NPV

$

At a required return of 9 percent, should the firm accept this project?

Accept

Reject

What is the NPV for the project if the required return is 21 percent?(Negative amount should be indicated by a minus sign.Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV

$

At a required return of 21 percent, should the firm accept this project?

Accept

Reject

At what discount rate would you be indifferent between accepting the project and rejecting it?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)