Question: 1 2 3 4 5 6 Question 11 (4 points) You are offered an investment with returns of $1,133 in year 1, $3,512 in year
1 2 3 4 5 6 Question 11 (4 points) You are offered an investment with returns of $1,133 in year 1, $3,512 in year 2, and $ 5,792 in year 3. The investment will cost you $ 5,592 today. If the appropriate Cost of Capital (quoted interest rate) is 70 %, what is the Net present Value of the investment? Enter your answer to the nearest $.01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the sign. > 7 8 9 Your Arywer: 10 11 12 Answer 13 14 15 16 17 18 Question 12 (4 points) A furm evaluates all of its projects by applying the IRR rule. The current proposed project has cash flows of $27,048, $16,850, $15,700, and $4,300 for years 0 to 3, respectively. The required return is 19 percent What is the project IRR? Should the project be accepted or rejected? 19 20 21 21.08 percent; accept 16.05 percent; accept - 202 S 4 1 1 % 5 8 7 6 9 8 0 2 3 Q O Y P W E R Il 100 G H K L F D A TOWN S 2 > C
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