Question: 1.) Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign.
1.) Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project M | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $3,400 | $730 | $860 | $900 | $980 | $480 |
Should the project be accepted or rejected
2.) Compute the NPV statistic for Project Y if the appropriate cost of capital is 13 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project Y | |||||
| Time: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | $9,100 | $3,570 | $4,400 | $1,740 | $520 |
Should the project be accepted or rejected?
3.) Compute the payback statistic for Project B if the appropriate cost of capital is 11 percent and the maximum allowable payback period is three years. (If the project never pays back, then enter a "0" (zero).)
| Project B | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $11,100 | $3,360 | $4,200 | $1,540 | $0 | $1,020 |
Should the project be accepted or rejected?
4.) Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)
| Project A | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $1,100 | $390 | $510 | $540 | $320 | $120 |
Should the project be accepted or rejected
5.) Compute the discounted payback statistic for Project C if the appropriate cost of capital is 9 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project C | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $1,200 | $560 | $540 | $580 | $340 | $140 |
Should the project be accepted or rejected?
6.) Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project E | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow | $3,200 | $950 | $930 | $820 | $600 | $400 |
Should the project be accepted or rejected?
7.) Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Project Z | ||||||
| Time: | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flow: | $1,200 | $390 | $520 | $690 | $340 | $140 |
Should the project be accepted or rejected?
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