Question: 1 o N 1 You are considering a project with an initial cost of $27,900. What is the payback period for this project if the




1 o N 1 You are considering a project with an initial cost of $27,900. What is the payback period for this project if the cash inflows are $14,650, $16,190, $12,480, and $9,500 a year over the next four years, respectively? Multiple Choice 0.82 year 0.90 year 1.11 years 1.82 years 1.90 years What is the internal rate of return for a project with the following cash flows? 2 Year O 1 Cash Flow $69,000 $35,500 $28,000 $21,500 2 3 Multiple Choice O 11.9 % O 12.1% O 12.3 % O 12.3 % O 12.5% 12.7 % ABC Inc. is looking at investing in a 3-year project that will create cash inflows of $7,000 in the first year, $8,000 in the second year, and $9,000 in the third year. The cost of this project is $18,000, and the required return is 12%. Calculate ABC's IRR for this project. Multiple Choice 12.36% 13.75% 15.17% 16.15% 16.98% ABC Inc. is looking at investing in a 3-year project that will create earnings before depreciation of $7,000 in the first year, $8,000 in the second year, and $9,000 in the third year. The cost of equipment needed for this project is $18,000, which will be depreciated on a straight-line basis to zero over the next 3 years. The tax rate is 30% and the required return is 12%. What is the accounting rate of return of this project? Multiple Choice 12.23% 13.34% 14.45% 15.56% 5.56% 16.57%
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