Compute the NPV statistic for Project Y given the following cash flows if the appropriate cost of capital is 10 percent. Project Y

Compute the payback statistic for Project Y and recommend whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 11 percent and the maximum allowable payback is one year.

Time:	0	1	2	3	4	5
Cash flow:	100	75	100	300	75	200

Multiple Choice

• 2.25 years, accept

• 1.25 years, reject

• 1.33 years, accept

• 1.25 years, accept

Multiple Choice

• $993.97

• $894.37

• $964.72

• $1,008.03