Question

Use the information in the table below for the following 5 questions. A capital investment project is estimated to have the following after-tax cash flows, by year -$35,000 $13,000 $14.000 $15,000$16,000 The company utilizes a discount rate of 8% to evaluate capital projects. You may have rounding errors in your calculations so choose the closest answer. Assume cash flows are received equally over the year. 10) The NET PRESENT VALUE for the project shown above is: a) $13,789 b) $9,672 c) $10,163 d) $12,708 e) $O 11) The INTERNAL RATE OF RETURN for the project shown above is: a) b) c) d) e) 3.92% 16.88% 14.27% 15.41% 22.81% 12) The PROFITABILITY INDEX for the project shown above is: a) 1.99 b) 0.89 c) 1.36 d) 2.15 e) 0.78 13) The PAYBACK for the project shown above is: a) 2.53 b) 2.86 c) 3.53 d) 3.00 e) Does not pay back 14) The DISCOUNTED PAYBACK for the project shown above is: a) 2.07 b) 4.86 c) 3.66

Answer 1

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0 0 832 lo829 aTle 868S 1712 2 O.u82 Uofng IRR ul Di couuk- RotrNPV IS 591 20 42 5916x (0-5) S416 1942 ヲIS 347 Present value oulflour 戍10ヲ12038十11 998 1191D +11760ヲ47706 1.86 SOOD C cnned with CamScanner

He 3DOD Payback Pevod - Avai lable Amouut coLt -Curmtulathue: Ool-Plato PVF@ 8% 0 926 O 897 Ye4 aolt Floto 12D38 11998 1191D 1760 2 ろ t2038 240 36 477D6 Available And 2t 3SooD-24036 la10 2 0.42 ヲ2.92 s Scanned with CamScanner