Project M nominal cash flows $87.32 $49.64 $89.59 $34.29 time 0 $41.09 1 $30 2 $30 uppose the real interest rate is 9% per year, and the inflation rate is 2% per ear. What is the PV of Project M? 3 $30 4 $30

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ed ok O t 1 ht 0 ences For the given cash flows, suppose the firm uses the NPV decision rule. Cash Flow Year 0 123 a. NPV b. NPV -$ 150,000 a. At a required return of 10 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required re urn of 20 percent, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 66,000 73,000 57,000

► CRC Inc. is buying new equipment that has the following cash flows: Year Cash Flow O-$17.7 What is the NPV if the interest rate is $6%? O $482.24 D -$537.78 0 -$500 O $22.44 1 $100 2 $200 3 $250

is 22 percent? Future Value and Multiple Cash Flows Wells, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 LO 1 3. percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 11 percent? At 24 percent? Year Cash Flow $ 865 1,040 1,290 1,385 1 2 3 4

4.Find the present worth in year 0 (PT) for the cash flow diagram using an interest rate of 10% per year PT=? PA=? i=10% Actual year 8 4 2 67 series year 1 3 14 A=$4000 $2000

Year 0123 Cash Flow -$ 27,000 11,000 14,000 10,000 The appropriate discount rate is 16 percent. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % Should the firm accept the project? O Reject O Accept