#1: An investment will cost $10,000 today for equipment plus expenses for labor and materials at a continuous annual rate of $2,000 per year for the next four years. The project will begin earning back money at a continuous rate of $3,000 per year beginning four years from now and continuing forever. Assuming an annual effective rate i = 2%, calculate the discounted payback period.

A project has estimated annual net cash flows of $6,250 for nine years and is estimated to cost $40,000. Assume a minimum acceptable rate of return of 12%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 10% 12% 15% 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.106 3 2.673 2.487 2.402 2.283 4 3.465 3.170 3.037 2.855 2.589 3.353 4.212 3.791 3.605 2.991 3.326 6. 4.917 4.355 4.111 3.785 3.605 5.582 4.868 4.564 4.160 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 5.650 10 7.360 6.145 5.019 4.192 Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value. Net present value of the project (round to the nearest dollar) Present value index (rounded to two decimal places)

A project generates annual cash flows of $3,000,000 each year for three years and costs $6,000,000. There will be a $1,000,000 cash outflow in year 4. What is the Modified IRR for the project if the discount rate is 12.00%?

Project A costs $67775, its expected net cash inflows are $10000 per year for 10 years, and its WACC is 8%. What is the projects discounted payback period?