HW problemsContent

Question 1

10 Points

What is the payback period for the following set of cash flows? (Round answer to two decomals, i.e. 32.16)

Period

Cash Flow

0

-6700

1

2200

2

3800

3

1600

4

4000

Question 2

10 Points

An investment project provides cash inflows of $1272 per year for eight years. What is the project payback period if the initial cost is $2689?

Question 3

10 Points

What is the IRR of the following set of cash flows? (Round your answer to percent with two decimals, i.e. 32.16)

Year Cash Flow

0 $-19,400

1 9,800

2 11,300

3 6,900

Question 4

10 Points

What is the NPV for the following set of cash flows with a discount rate of 10.6 percent? (Round answer to two decimals, i.e. 32.16)

Period

Cash Flow

0

-6700

1

2200

2

3800

3

9000

4

400