a$)$Popps Ltd is considering a project with an initial investment of $120,000.$

This project will generate the following cash flows:

$$

Year $115,000$

Year $225,000$

Year $340,000$

Year $440,000$

Year $535,000$

Year $630,000$

Using a discount rate of $20\%$ the discounted payback period would be:

The investment does not pay back

$4$ years

$6$ years

$5$ years

b$)$An asset initially costs $100,000.$ It is expected to last for $5$ years and it will

be worthless at the end of this time. Depreciation is charged on a straight line

basis over the assets useful life. Given the following profits from the

investment what is its net present value assuming a discount rate of $10\%?$

$$

Year $17,500$

Year $212,500$

Year $316,000$

Year $414,000$

Year $512,500$

$162,479$

$22,284$

$(53,500)$

$(37,509)$

c$)9.$ A project has the following cash flows:

Year $010,500$ initial investment

Year $14,486$ cash inflow

Year $23,915$ cash inflow

Year $33,206$ cash inflow

Year $42,677$ cash inflow

What is the internal rate of return of this project?

$17\%$

$11\%$

$15\%$