1. A project has an initial cost of $99,865, and promises to pay a fixed cash flow per year for 3 years. It has been determined that using a discount rate of 12.1 percent, its net present value is $100,196. What must be the expected annual cash flow?

2. The Xdiagnose Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is “looking up.” As a result, the cemetery project will provide a net cash inflow of $135,682 for the firm during the first year, and the cash flows are projected to grow at a rate of 3.9 percent per year forever. The project requires an initial investment of $1.6 million. If Xdiagnose requires a 10.1 percent return on such undertakings, what is the NPV of the project?

3. A project has the following cash flows for years 0 through 3, respectively: -14,881, 5,535, 5,354, 17,161. What is the payback period?