1. A project has annual cash flows of $7000 for the next 10 years and then $6000 each year for the following 10 years. The IRR of this 20-year project is 12.24%. If the firm's WACC is 10%, what is the projects NPV?
2. Project L costs $50,000, it's expected cash inflows are $15,000 per year for 9 years, and it's WACC is 14%. What is the project's payback?
3. Your supplier offers terms of 1.8/12, Net 45. What is the effective annual cost of trade credit if you choose to forgo the discount and pay on day 45 ?
The effective annual cost of the trade credit is _________%. ?(Round to two decimal places.)