If a company has a required return of 10% and the following cash flows for a proposed project, what is the NPV? Year 0: -117 Year 1: 35 Year 2:33 Year 3: 54  Year 4: 79

16. You are considering an investment with the following cash flows: Year Cash Flow    0 -$50,000    1   $ 7,000    2   $ 4,000    3   $9,000    4   $61,000    What is the internal rate of return (IRR) for this investment?  SHOW WORK

The following are two projects a firm is considering: Project B Cash Flow Year 0 1 2 3 4 $2,939.01 Assuming that the relevant cost of capital for both projects is 11%, you should be able to determine the net present value (NPV) and the internal rate of return (IRR) for both project. Assume now that the firm has capital rationing, but knows that its true reinvestment rate is 20%, while its cost of capital is 11 percent. Given this information, determine the modified net present value (MNPV) for Project B. O $2.479.00 O $2.965.10 O$3.479.89 Project A Cash Flow O $4,084.05 ($10,000.00) ($11,000.00) $3,000.00 $5,000.00 $4,000.00 $4,000 00 $5,000.00 $4,000.00 $2,000.00 $2,000.00

Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28.000 32,000 3 36,000 4 39,000 O$6,000 O $20,678 $1,193 $27,335 O $30,000 Page 16 of 30

For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow 0-$ 150,000 1 66, 000 2 73,000 3 57,000 a. At a required return of 10 percent, what is the NPV of the project? b. At a required return of 20 percent, what is the NPV of the project?

An investment will provide the following future cash flows. Year 1 = 5,919 Year 2 = 8,327 Year 3 and 4 = 4,718 Year 5 = 3,048 Using a 9.01% discount rate, what is the present value of this investment?

Consider the following cash flow year cash flow -1000 TL 2 +300 TL 3 +300 TL 4 +300 TL +300 TL Calculate the rate of return for an investment of 1000 TL

A company is considering a project that has the attached cash flows: what is its IRR? Year 0= -$1050 Year 1= $500 Year 2= $500 Year 3= $500 Year 4= $500

Refer to two projects with the following cash flows: Year Project A Project B 0 -$110 -$110 1 45 55 2 45 55 3 45 55 4 45 If the opportunity cost of capital is 11%, what is the profitability index for each project?

For the given cash flows, suppose the firm uses the NPV decision rule. Year Cash Flow -$ 155,000 61,000 78,000 62,000 1 2 3 At a required return of 10 %, what is the NPV of the project? At a required return of 19%, what is the NPV of the project?