Question 1. Stern Associates is considering a project that has the following cash flow data. What is the project's payback?
Year 0 1 2 3 4 5
Cash flows -$1,100 $300 $310 $320 $330 $340
A. 2.31 years
B. 2.56 years
C. 2.85 years
D. 3.16 years
E. 3.52 years
Question 2. Oranges Inc. is considering a project that has the following cash flow and Cost of Capital data. What is the project's discounted payback?
Cost of Capital: 10.00%
Year 0 1 2 3 4
Cash flows -$950 $525 $485 $445 $405
A. 1.61 years
B. 1.79 years
C. 1.99 years
D. 2.22 years
E. 2.44 years
Question 3. Maxwell Food is considering a project that has the following cash flow data. What is the project's IRR?
Year 0 1 2 3 4 5
Cash flows -$9,500 $2,000 $2,025 $2,050 $2,075 $2,100
A. 2.08%
B. 2.31%
C. 2.57%
D. 2.82%
E. 3.10%