5)

Cash flows for Project Y is given below and the appropriate cost of capital is 11 percent.

Project Y

TIME	0	1	2	3	4
Cash Flow	$ 11,500	$ 3,190	$ 3,930	$ 1,480	$ 1,900

Compute the NPV for Project Y. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

NPV

$

Using the NPV decision rule, should the project be accepted or rejected?

7)

The cash flows for Project A is shown below with the appropriate cost of capital at 12.5 percent and the maximum allowable payback is four years.

Project A

TIME	0	1	2	3	4	5
Cash Flow	$ 920	$ 280	$ 410	$ 570	$ 200	$ 240

Compute the payback period for Project A. (Round your answer to 2 decimal places.)

Payback period

years

Should the project be accepted or rejected?

8)

The cash flows for Project C is shown below with the appropriate cost of capital at 13.5 percent and the maximum allowable payback is three years.

Project C

TIME	0	1	2	3	4	5
Cash Flow	$ 910	$ 390	$ 500	$ 530	$ 120	$ 180