Required rate of return for these projects is 10 the net


Question # 1: Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate $48,000 in year one and $45,000 in year two. Project B costs $80,000 and is expected to generate $34,000 in year one, $37,000 in year two, $26,000 in year three and $25,000 in year four. Zellars ,Inc's required rate of return for these projects is 10%. The net present value for Project A is:

A. $5,826

B. $6,347

C. $28.000

D. $9,458

Question #2: Same as one expect: The net present value for Project B is:

a. $18,000

b. $42,000

c. $34,238

d. $21,378

Question #3: Same as one expect: The internal rate of return for Project B is:

A. 18.64%

B. 16.77&

c. 20.70%

D. 26.74%

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Financial Accounting: Required rate of return for these projects is 10 the net
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