1. 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 |
-$ |
5,800 |
|
| 1 |
|
1,375 |
|
| 2 |
|
1,575 |
|
| 3 |
|
1,975 |
|
| 4 |
|
1,475 |
2. An investment project has annual cash inflows of $3,300, $4,200, $5,400, and $4,600, 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 $6,000? (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 $8,100? (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 $11,100? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Discounted payback period years
A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:
| Year |
Cash Flow |
| 0 |
-$ |
28,100 |
|
| 1 |
|
12,100 |
|
| 2 |
|
15,100 |
|
| 3 |
|
11,100 |
3. If the required return is 15 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.)
IRR %
Should the firm accept the project?
No
Yes
4. 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 |
-$ |
27,300 |
|
| 1 |
|
11,300 |
|
| 2 |
|
14,300 |
|
| 3 |
|
10,300 |
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?
Yes
No
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?
Yes
No
5. A project that provides annual cash flows of $17,000 for ten years costs $76,000 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.
Discount rate %
please answer all questions in order, thank you much appreciated