Module Eight Homework $1.$ What is the payback period for a project that has an initial investment of $$100,000$ and has an annual cash inflow of $$25,000$ each year? Initial Investment$/$Net Annual Cash Inflow $1.$ Payback Period $2.$ A company is considering a project with an initial investment of $$80,000.$ The annual inflow from the project is $$10,000$ for ten years. The salvage value for the project is $$12,000$ in year ten. The cost of capital is $12\%.$ What is the net present value? Should the company make this investment? $($Round all numbers to whole numbers.$)$ What is the internal rate of return? $2.$ NPV Cost of Capital Year Cash Flows NPV $=$ IRR$=3.$ A company is considering a project with an initial investment of $$200,000.$ The annual inflow from the project is $$50,000$ for twelve years. The salvage value for the project is $$20,000$ in year twelve. The cost of capital is $6\%.$ What is the net present value? Should the company make this investment? $($Round all numbers to whole numbers.$)$ What is the internal rate of return? $3.$NPV Cost of Capital Year Cash Flows NPV$=$ IRR$=4.$ The following information relates to a capital project that will last for six years $($dollars are in thousands$).$ The discount rate is $10\%.$ What is the net present value? Should the company make this capital investment? $($Round all numbers to whole numbers.$)$ What is the internal rate of return? Purchase of land and building $$(2,450)$ Training of staff $$(50)$ Annual cash inflow from new facility $$2,200$ Annual cash outflow from new facility $$(1,800)$ Salvage value of facility in six years $$5004.$ NPV Initial Outflow Annual Net Cash Inflow Discount Rate Year Cash Flows NPV$=$ IRR$=$