# simone project 6

## Project Description:

question 1 (1 point)

quick sale real estate company is planning to invest in a new development. the cost of the project will be \$23 million and is expected to generate cash flows of \$14,000,000, \$11,750,000, and \$6,350,000 over the next three years. the company's cost of capital is 20 percent. what is the internal rate of return on this project? (round to the nearest percent.)
question 1 options:

20%

24%

22%

28%
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question 2 (1 point)

muncy, inc., is looking to add a new machine at a cost of \$4,133,250. the company expects this equipment will lead to cash flows of \$817,322, \$863,275, \$937,250, \$1,019,610, \$1,212,960, and \$1,225,000 over the next six years. if the appropriate discount rate is 15 percent, what is the npv of this investment?
question 2 options:

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question 3 (1 point)

given the following cash flows for a capital project, calculate the irr using a financial calculator
year
0 1 2 3 4 5
cash flows (\$50,467) \$12,746 \$14,426 \$21,548 \$8,580 \$4,959

question 3 options:

8.41%

8.05%

8.79%

7.9%
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question 4 (1 point)

an investment of \$83 generates after-tax cash flows of \$48.00 in year 1, \$66.00 in year 2, and \$127.00 in year 3. the required rate of return is 20 percent. the net present value is
question 4 options:

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question 5 (1 point)

cortez art gallery is adding to its existing buildings at a cost of \$2 million. the gallery expects to bring in additional cash flows of \$520,000, \$700,000, and \$1,000,000 over the next three years. given a required rate of return of 10 percent, what is the npv of this project?
question 5 options:

-\$197,446

\$1,802,554

\$197,446

-\$1,802,554
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question 6 (1 point)

which one of the following statements about the payback method is true?
question 6 options:

the payback method is consistent with the goal of shareholder wealth maximization

the payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return.

there is no economic rational that links the payback method to shareholder wealth maximization.

none of these statements are true.
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question 7 (1 point)

mckenna sports authority is getting ready to produce a new line of gold clubs by investing \$1.85 million. the investment will result in additional cash flows of \$525,000, \$837,500, and \$1,245,000 over the next three years. what is the payback period for this project?
question 7 options:

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question 8 (1 point)

monroe, inc., is evaluating a project. the company uses a 13.8 percent discount rate for this project. cost and cash flows are shown in the table. what is the npv of the project?
year project
0 (\$11,368,000)
1 \$ 2,187,590
2 \$ 3,787,552
3 \$ 3,275,650
4 \$ 4,115,899
5 \$ 4,556,424
question 8 options:

Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: \$0 to \$10
Completed
Total Proposals: 1
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