Question: please there is some questions that is link to each other please answer me all questions Fast ASAP i know chegg not allowed to all

please there is some questions that is link to each other please answer me all questions Fast ASAP i know chegg not allowed to all but that is link to each other

please there is some questions that is link to each other please

answer me all questions Fast ASAP i know chegg not allowed to

Use the following information for Questions 7 through 10: You are heading the R&D department of a growing biotech company. You have identified an investment opportunity that would require a $5 million investment upfront in terms of personnel and lab equipment and subsequent cash outflows of $500,000 per year. The company did a market study that suggests a cash revenue stream of $2.15 million per year for three years and then $1.6 million per year for another three years. At the end of the sixth year, it is estimated that the lab equipment could be sold for a salvage value of $200,000. Assume that all of the cash flows are net of taxes. In terms of risk, the project would be similar to others in the firm, which uses a hurdle rate of 18%. Question 7 10 Points From a purely economic perspective, should you invest in this project? 0 No, because you are not able to exactly estimate a discount rate for NPV calculation No, because it has a negative NPV Yes, because it has a positive NPV Yes because the IRR equals your average yield on the baseball card investment Question 8 10 Points What is the IRR of the project? O 18% 0 19% O 21% 20% Question 9 10 Points What is the payback period for this project? 0 impossible to determine from the information given O between 3 and 4 years O between 1 and 2 years 0 between 2 and 3 years Question 10 10 Points What is the profitability index for this project? 2.04 0 impossible to determine from the information given 0 1.02 0 3.05

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