QUESTION $3$

A $5-$year project has a risk$-$adjusted discount rate of $5\%$ p$.$a$.$ The investment would be needed right away $($i$.$e$.,$ in $2020),$ and sales will occur

from $2021$ to $2025.$ You've already crunched the numbers and found the cash flows $($CF$)$ associated with the project, which are shown below.

For simplicity, assume the given CF are in dollars $($i$.$e$.,$ not thousands nor millions of dollars$).$

Find the value of the equivalent annuity for this project. Round your answer to the nearest dollar. $($Acceptable error $=$$$2)$

QUESTION $4$

Hook n$\text{'}$ Crook, Inc. has a $2-$year project with the following cash flows: $I=-$$$1,000,C_1=+$$$5337,$ and $C_2=-$$ $-4309.$ Find the value of the

LARGEST IRR of this project. Note: If you wish, you may use the calculator to find one of the IRRs, and then use a method given in your class

notes to find the other one, so you can determine which one is the largest number. Give the answer as a percent with two decimals; e$.$g$.,23\mathrm{.}24$

and, as always, do not include symbols in your answer.,$2,$ and $3$ are $-$$$73$;$$95$;$$91$; and $$74,$ respectively. Clone each project to

their least common multiple $($LCM$)$ year and find the unbiased NPV for each sequence of clones. What is the difference of the unbiased NPV of

the two cloned projects? Assume an annual discount rate of $15\%.$ Round the answer to the nearest dollar. $($Acceptable error $=$$$2)$

Note: Subtract the NPV of the cloned sequence of project D minus the NPV of the cloned sequence of project T$.$

QUESTION $2$

Project $D$ has an economic life of $2$ years, and its cash flows for years $0,1,$ and $2$ are $-$$$149$;$$144$; and $$131,$ respectively. In contrast, Project

Q has an economic life of $4$ years, and its cash flows for years $0,1,2,3,$ and $4$ are $-$$$63$;$$68$;$$82$;$$87$; and $$52,$ respectively. Clone each

project to their least common multiple $($LCM$)$ year and find the unbiased NPV for each sequence of clones. What is the difference of the

unbiased NPV of the two cloned projects? Assume an annual discount rate of $12\%.$ Round the answer to the nearest dollar. $($Acceptable error $=$

$$2)$

Note: Subtract the NPV of the cloned sequence of project D minus the NPV of the cloned sequence of project Q$.$