2.

Tedder Mining has analyzed a proposed expansion project and determined that the internal rate of return is lower than the firm desires. Which one of the following changes to the project would be most expected to increase the project's internal rate of return?

Decreasing the required discount rate.

Increasing the initial investment in fixed assets.

Condensing the firm's cash inflows into fewer years without lowering the total amount of those inflows.

Eliminating the salvage value.

Decreasing the amount of the final cash inflow.

3)

A project has cash flows of -$128,000, $52,800, $60,200, and $183,100 for years 0 to 3, respectively. The required payback period is two years. Based on the payback period of _____ for this project, you should _____ the project.

2.79; accept

1.79; accept

2.46; accept

2.08; reject

2.29; reject

5)

What is the net present value of a project with the following cash flows and a required return of 12 percent?

Year	Cash Flow
0	$59,300
1	18,300
2	36,530
3	4,750

$10,052.55

-$10,052.55

$10,458.27

-$13,578.43

-$10,458.27