Question: A firm is considering a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $9,000 in the three
A firm is considering a project with an initial cost of $9,500. Cash inflows are expected to be $1,500, $1,500 and $9,000 in the three years over which the project will produce cash flows. If the discount rate is 9%, what is the net present value of the project? Select one: O a. Less than $0 b. Between $0 and $400 c. Between $400 and $800 O d. More than $800 Machine A requires an initial investment of $10,000 and is projected to realize cash inflows of $4,000 in year 1, $6,000 in year 2, and $4,000 in year 3. Assuming a WACC of 14%. What is the Profitability Index of an investment in Machine A? Select one: O A. 0.93 OB. 1.10 OCH 1.33 OD 1.08
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