Consider a projects incremental cash flows in order are: -$700, $300, $250, $200. Assume a cost of capital of 9%. What is the NPV of this project? What would the NPV function in Excel say is the NPV of this project?

A. 50.00;59.91 B. 59.91;50.00 C. 59.91;54.97 D. 54.97;59.91

An investment costs $400,000 today and is expected to produce a one-time inflow at the end of year 8 of $450,000. What is the IRR of this project?

A. 1.48%

B. 1.01%

C. 10.15%

D. 14.83%

A project has the following incremental cash flows for years zero, through year 4, respectively: -$3,000, $900, $800, $1,000 and $700. Is 9% the IRR of this project? If not, is where is the IRR compared to 9%?

A. Yes, 9% is the IRR.

B. No, the IRR is above 9%.

C. No, the IRR is below 9%

D. There is not enough information provided to answer his question.

A project has the following incremental cash flows for years zero, through year 3, respectively: -$1,700, $800, $1,000, and $200. What is the IRR of this project?

A. 1.16%

B. 16.01%

C. 10.16%

D. 8.73%

Projects A and B are mutually-exclusively. In the NPV profile graph, the vertical-intercept for A is $8 million and that for B is $11 million. The IRR for A is 13% and the IRR for B is 10%. The crossover rate for the two projects is 8%. If the firms cost of capital is 6%, which project should be preferred and why?

A. A because it has the higher IRR.

B. B because it has the higher NPV.

C. A because it has the higher NPV.

D. B because its IRR is above the crossover rate.