Question: 13-2 NPV with Normal Cash Flows Compute the NPV statistic for Project Y and indicate whether the firm should accept or reject the project with

13-2 NPV with Normal Cash Flows Compute the NPV statistic for Project Y and indicate whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent. (LG13-3)

Project Y Time: 0 1 2 3 4

Cash flow $8,000 $3,350 $4,180 $1,520 $300

13-3 NPV with Non-Normal Cash Flows Compute the NPV statistic for Project U and recom- mend whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 10 percent. (LG13-3)

Project U Time: 0 1 2 3 4 5

Cash flow $1,000 $350 $1,480 $520 $300 $100

13-5 Payback Compute the payback statistic for Project B and decide whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 percent and the maximum allowable payback is three years. (LG13-2)

Project B Time: 0 1 2 3 4 5

Cash flow $11,000 $3,350 $4,180 $1,520 $0 $ 1,000

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