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  1. What is the profitability index of a project with the following cash flows if the discount rate is 5 percent?

Year

CFs

0

-1,353

1

1,064

2

388

3

243

 

 

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Question 2

  1. What is the profitability index of a project with the following cash flows if the discount rate is 13 percent?

Year

CFs

0

-331

1

247

2

217

3

459

4

203

Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Question 3

  1. What is the Modified Internal Rate of Return (MIRR) for the following cash flows? Assume that the required rate of return is 4%

Year

CFs

0

-800

1

100

2

200

3

300

4

400

  1.  
  2. Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 5

  1. Suppose a project has initial outlay of $10,000 and after tax cash flows of $4,000 each year for 5 years. If the required rate of return is 10%, what is the equivalent annual annuity?

Enter your answer rounded off to two decimal points.

Question 6

  1. What is the net present value of a project with the following cash flows if the discount rate is 16 percent?

 

Year

CFs

0

-826

1

815

2

588

3

298

 

 

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 8

  1. What is the Internal Rate of Return (IRR) for the following cash flows?

Year

CFs

0

-800

1

100

2

200

3

300

4

400

  1.  
  2. Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Question 9

  1. What is the profitability index of a project with the following cash flows if the discount rate is 8 percent?

Year

CFs

0

-976

1

336

2

677

3

298

4

403


  1. Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

 

Question 10

  1. ABC Inc. is considering a project with an initial cost of $1,610. The project will not produce any cash flows for the first three years. Starting in year four, the project will produce cash inflows of $524 a year for three years. This project is risky, so the firm has assigned it a discount rate of 11 percent. What is the project's net present value?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 11

  1. A project has the following cash flows. What is the payback period?

 

Year

CFs

0

-$241

1

 $58

2

 $76

3

 $57

4

 $282

 

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

 

Question 14

  1. What is the net present value of a project with the following cash flows if the discount rate is 15 percent?

 

Year

CFs

0

-611

1

271

2

311

3

218

4

466

 

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

 

Question 15

Year

CFs

0

-733

1

327

2

240

3

384

4

249

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

Question 16

  1. A project has the following cash flows. What is the payback period?

Year

CFs

0

-$438

1

 $281

2

 $75

3

 $297

4

 $199

  1.  
  2. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

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