Consider the below three investment projects generating cash flows as follows: Project 1 2 3 4 A 1,000,000 550,000 750,000 -500,000 -500,000 -500,000 -500,000 -500,000 -500,000 -500,000 -500,000 -500,000 B 1,000,000 1,000,000 C Assume that the cost of capital is 10%. Use this cost of capital to discount (or inflate) all negative cash flows to the present time and all positive cash flows to period 1 in the below table. Then, calculate the IRR based on the cash flows of period 0 and 1. Project A 1 IRR B Using the above modified IRR, make investment decision for each project. Dose the modified IRR deliver correct decisions?

3) Consider the following two projects:   Net Cash Flow Each Period Initial Outlay 1 2 3 4 Project A  $4,000,000 $2,003,000 $2,003,000 $2,003,000 $2,003,000 Project B   $4,000,000 0 0 0 $11,000,000   Calculate the net present value of each of the above projects, assuming a 14 percent discount rate. What is the internal rate of return for each of the above projects? Compare and explain the conflicting rankings of the NPVs and IRRs obtained in parts a and b above. If 14 percent is the required rate of return, and these projects are independent, what decision should be made? If 14 percent is the required rate of return, and the projects are mutually exclusive, what decision should be made?

What is the NPV of the estimated cash flows for the following project using a Weighted Average Cost of Capital of 7.0%? Year 0 1 2 3 Cash Flow -140 50 70 90 Group of answer choices 47.54 38.63 59.94 70.00 41.34

A project has the cash flows shown in the following table.  If the cost of capital is 9%, what is the NPV of the project?       Year          0          1          2         3          4          5          6         Incremental Free Cash Flow        -913       281       281       281      281      281      191    Question 5Answer a. $294 b. $272 c. $312 d. $325