Question: Please answer all questions and show step by step using BA II calculator. Question 1 - NPV 3 point): The Seattle Corporation has been presented

Please answer all questions and show step by step using BA II calculator. Please answer all questions and show step by step using BA II

Question 1 - NPV 3 point): The Seattle Corporation has been presented with an investment opportunity which will yield end of year cash flows of $30,000 per year in Years 1 through 4, S35,000 per year in Years 5 through 9, and $40,000 in Year to. This investment will cost the firm $150,000 today, and the firm's required rate of retum is 10 percent. What is the NPV for this investment? Question 2 - NPV 3 point]: Tapley Acquisition Inc. is considering the purchase of Target Company. The acquisition would require an initial investment of S190,000, but Tapley's after-tax net cash flows would increase by $30,000 per year and remain at this new level forever. Assume the required rate of return is 15 percent. Should Tapley buy Target? Question 3 - IRR 13 point): Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 3 4 5 Cash flows $9,500 $2,000 $2,025 $2,050 $2,075 S2 .100 Question 4 - Payback Period 13 point: Stern Associates is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 4 5 Cash flows $1,100 $300 $310 $320 $340 $340 Question 5 - Discounted Payback Period [4 points]: Femando Designs is considering a project that has the following cash flow data. The required rate of return is 10 percent. What is the project's discounted payback? Year 0 1 2 3 Cash flows -5900 $500 $500 $500 Question 6 - Mutually Exclusive Projects (4 points]: Two projects being considered are mutually exclusive and have the following projected cash flows: Yes A LES o 50,000 350.000 1 15.105 15.25 65.625 0 4 15425 15.125 2.500 If the required rate of return on these projects is 10 percent, which would be chosen and why

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