Poder Inc. is considering a project that has the following cash flow data. What is the project's payback? Year O 2 3 Cash flows -$750 $300 $325 $350 O a. 2.59 years O b. 2.85 years O c. 2.36 years O d. 2.12 years O e. 1.91 yearsModem Refurbishing Inc. is considering a project that has the following cash ow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (and even negative), in which case it will he rejected. Year 0 1 2 3 4 Cash ows $850 $300 $290 $280 $270 0 a. 15.89% 0 b.19.22% O C. 17.48% 0 d.13.13% 0 e. 14.44% Pet World is considering a project that has the following cash ow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (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 $2,100 O a. 2.31% O b.3.10% O C. 2.08% O d.2.57% 0 e. 2.82% Assets other than cash are expected to produce cash over time, but the amount of cash they eventually produce could be higher or lower than the values at which these assets are canied on the books' 0 True 0 False Consider the balance sheet of Wilkes Industries as shown below. Because Wilkes has $800,000 of retained earnings, the company would be able to pay cash to buy an asset with a cost of $200,000. Cash $ 50,000Accounts payable $ 100,000 Inventory 200,000Accruals 100,000 Accounts receivable 250,000Total CL $ 200,000 Total CA $ 500,000Debt 200,000 Net fixed assets $ 900,000Common stock 200,000 Retained earnings 800,000 Total assets $1,400,000Total L & E $1,400,000 O True O FalseNet operating prot after taxes (NOPAT) is the amount of net income a company would generate from its operations if it had no interest income or interest expense. 0 True 0 False The income statement shows the difference between a lm's income and its costs i.e., its prots during a specied period of time. However, not all reported income comes in the form or cash, and reported costs likewise may not correctly reflect cash outlays. Therefore, there may be a substantial difference between a nn's reported prots and its actual cash ow for the same period. 0 True 0 False To estimate the cash ow from operations, depreciation must be added back to net income because it is a non-cash charge that has been deducted from revenue. 0 True 0 False Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges, it had $3,250 of outstanding bonds that carry a 6.75% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm was required to spend $750 to buy new fixed assets and to invest $250 in net operating working capital. How much free cash flow did Wells generate? O a. $2,491.79 O b. $2,050.00 O c. $2,260.13 O d. $2,373.13 O e. $2,152.50