Question: is 4b correct? and how do you do 5? Problem 4: Calculating NPV. For the cash flows in the previous problem, suppose the firm uses

is 4b correct? and how do you do 5? is 4b correct? and how do you do 5? Problem 4: Calculating

Problem 4: Calculating NPV. For the cash flows in the previous problem, suppose the firm uses NPV to evaluate projects. 4a. At a required return of 11% the projects NPV is $0513 4a. Points: 5 b. At a required return of 20% the projects NPV is $15. Points: 5 Problem 5: Calculating NPV and IRR. A project that provides annual cash flows of $ 1,710 for 10 years costs $ 7,560 today. 5a. The NPV is $ 5a. Points: 3 5b. The NPV is 5b. Points: 3 if the required rate of return is 10% _if the required rate of return is 24%. SC. At what discount rate would you be indifferent between accepting the project and rejecting it? I would be indifferent at %. 5c. Points: 4 Problem 6: Calculating NPV and IRR. Use the following set of cash flows to calculate the NPV and IRR. Year Cash flow -6,500 0 0 1 6,800 2.700 if the required rate of return is 9%. 6a. The NPV is $ 6a. Points: 2.5 6b. The NPV is $ 6b. Points: 2.5 if the required rate of return is 19% if the required rate of return is 29%. 6c. The NPV is $ 6c. Points: 2.5 6d. The IRR is 6d. Points: 2.5

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