Question: 1)Compute the NPV statistic for Project Y if the appropriate cost of capital is 10 percent. (Negative amount should be indicated by a minus sign.

1)Compute the NPV statistic for Project Y if the appropriate cost of capital is 10 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: $8,500 $3,730 $4,560 $1,900 $680

2)Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 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: $1,000 $480 $480 $520 $300 $100

3)Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.

Time: 0 1 2 3 4 5 6
Cash flow: $5,000 $1,200 $2,400 $1,600 $1,600 $1,400 $1,200

Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)

4)Compute the payback statistic for Project A if the appropriate cost of capital is 9 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: $2,400 $910 $900 $800 $580 $380

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!