Question: Note: These questions go together. I cant post them separate. QUESTION 9 What is the NPV of a project that requires an initial investment of

Note: These questions go together. I cant post them separate.

QUESTION 9

  1. What is the NPV of a project that requires an initial investment of 23 and positive cash flows from years 1 through 3 of 5, 10, and 25? Assume a discount rate of 5%.

    11.8

    13.6

    14.4

    15.9

1 points

QUESTION 10

  1. Should you invest in the above project based on its NPV?

    Yes

    No

    Insufficient data

1 points

QUESTION 11

  1. What is the IRR of the above project?

    -19.8%

    12.1%

    19.9%

    25.5%

QUESTION 12

  1. If the cost of capital for the above project were 30%, would you invest in this project based on the IRR?

    Yes

    No

    Insufficient data

1 points

QUESTION 13

  1. If the cost of capital for the above project were 20%, would you invest in this project based on the IRR?

    Yes

    No

    Insufficient data

1 points

QUESTION 14

  1. What is the payback period of the above project?

    1 years

    2 years

    3 years

    4 years

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