1. If a project's net present value is negative, the internal rate of return is:

A) equal to the discount rate.

B) greater than the discount rate.

C) cannot be determined without more information.

D) less than the discount rate.

2. Assume that you invest $100,000 today at an annual rate of eight percent for four years. How much will you have at the end of four years (rounded to the nearest dollar)?

A) $132,000

B) $124,000

C) $125,971

D) $136,049

E) None of the answer choices is correct.

3. Assume you receive $63,000 in three years and the annual interest rate is five percent. Using the present value formula, how much is that amount worth in today's dollars (rounded to the nearest dollar)?

A) None of the answer choices is correct.

B) $53,550

C) $72,945

D) $54,422

E) $63,000

4. Sanders Company would like to purchase a specialized production machine for $1,000,000. The machine is expected to have a life of five years, and a salvage value of $300,000. Annual maintenance costs will total $50,000. Annual labor savings are predicted to be $280,000. The company's required rate of return is 15 percent.

Ignoring the time value of money, what is the net cash inflow or (outflow) resulting from this investment opportunity?

A) None of the answer choices is correct.

B) $1,450,000

C) ($100,000)

D) $450,000

E) $950,000

5. Inglewood Inc. would like to purchase a specialized production machine for $3,500,000. The machine is expected to have a life of three years, and a salvage value of $200,000. Annual maintenance costs will total $200,000. Annual material savings are predicted to be $900,000. The company's required rate of return is 20 percent. Ignoring the time value of money, what is the net cash inflow or (outflow) resulting from this investment opportunity?

A) $2,300,000

B) None of the answer choices is correct.

C) $1,200,000

D) ($2,300,000)

E) ($1,200,000)