Compute a final numerical answer for each of the following problems. You should work out your solutions on loose leaf paper in an organized manner so that when I post the solution key, you can determine why answers that you missed were incorrect. This will allow you to LEARN from any mistakes so you to not repeat these on the Final Exam (which is worth 35% of your grade in this class). Unless instructed otherwise on a question, round all dollar answers to 2 decimal places, record IRR values as a percent rounded to 2 decimal places, round payback period or profitability index values to 1 decimal place, and record WACC values as a percent rounded to 2 decimal places. USE THE TABLE BELOW TO ANSWER THE FOLLOWING THREE (3) QUESTIONS Year Project A Cash Flows ($s) Project B Cash Flows ($s) Project C Cash Flows ($s) 0 -100,000 -700,000 -2,350,000 1 25,000 180,000 2,500,000 2 20,000 150,000 2,500,000 3 30,000 190,000 2,500,000 4 25,000 140,000 5 25,000 140,000 6 20,000 The payback period for Project A is __________ years. The payback period for Project B is __________ years. The payback period for Project C is __________ years.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Compute a final numerical answer for each of the following problems. You
should work out your solutions on loose leaf paper in an organized manner so that when I post the solution
key, you can determine why answers that you missed were incorrect. This will allow you to LEARN from
any mistakes so you to not repeat these on the Final Exam (which is worth 35% of your grade in this class).
Unless instructed otherwise on a question, round all dollar answers to 2 decimal places, record IRR values
as a percent rounded to 2 decimal places, round payback period or profitability index values to 1 decimal
place, and record WACC values as a percent rounded to 2 decimal places.
USE THE TABLE BELOW TO ANSWER THE FOLLOWING THREE (3) QUESTIONS
Year Project A Cash Flows ($s) Project B Cash Flows ($s) Project C Cash Flows ($s)
0 -100,000 -700,000 -2,350,000
1 25,000 180,000 2,500,000
2 20,000 150,000 2,500,000
3 30,000 190,000 2,500,000
4 25,000 140,000
5 25,000 140,000
6 20,000
The payback period for Project A is __________ years.
The payback period for Project B is __________ years.
The payback period for Project C is __________ years.
 
 
 
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