Question: Question 9 (1 point) Corey is considering two projects both of which have an initial cost of $20,000 and total cash inflows of $25,000. The
Question 9 (1 point) Corey is considering two projects both of which have an initial cost of $20,000 and total cash inflows of $25,000. The cash inflows of project A are $3,000, $5,000, $8,000, and $9,000 over the next four years, respectively. The cash inflows for project B are $9,000, $8,000, $5,000, and $3,000 over the next four years, respectively. Which one of the following statements is correct if Corey requires a 10 % rate of return and has a required discounted payback period of 3 years? O A) You should be indifferent to accepting either or both projects. O B) Project A should be rejected and project B should be accepted. O C) Both projects should be accepted. O D) Project A should be accepted and project B should be rejected. O E) Both projects should be rejected. Question 10 (1 point) A project has an initial cash outlay of $29,500. Cash inflows are estimated at $1,200, $6,900, $7,800, $9,500, and $4,800 for years 1 through 5, respectively. What is the net present value of this project given a 7% discount rate? O A) $700.00 ( B) $1,806.33 O C) ($5,677.15) O D) ($2,618.03) O E) ($5,314.82)
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