Question 1

A project has the following cash flows for years 0 through 3, respectively: -49,194, 15,754, 22,046, 37,861. If the required return is 14.6 percent, what is the net present value of the project?

Question 2

A project has the following cash flows for years 0 through 2, respectively: -12,043, 8,609, 9,508. What is the internal rate of return on this project?

Question 3

A project has the following cash flows, for years 0 through 3 respectively: -24,094, 9,209, 10,998, 9,424. If the required return is 11.1 percent, what is the profitability index?

Question 4

A project has the following cash flows for years 1 through 3 respectively: 1,556, 1,862, 1,188. Using a discount rate of 11.8 percent, it has been determined that the profitability index is 1.41. What must the project's initial cost be? (Enter absolute value of the initial cost.)

Question 5

A project has an initial cost of $96,109, and promises to pay a fixed cash flow per year for 3 years. It has been determined that using a discount rate of 11.1 percent, its net present value is $112,187. What must be the expected annual cash flow?

Question 6

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 $107,777 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. The project requires an initial investment of $1.4 million. If Xdiagnose requires a 8.9 percent return on such undertakings, what is the NPV of the project?

Question 7

A project has the following cash flows for years 0 through 3, respectively: -14,886, 5,172, 5,464, 19,563. What is the payback period?