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
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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
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Should you invest in the above project based on its NPV?
Yes
No
Insufficient data
1 points
QUESTION 11
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What is the IRR of the above project?
-19.8%
12.1%
19.9%
25.5%
QUESTION 12
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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
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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
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What is the payback period of the above project?
1 years
2 years
3 years
4 years
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