- Test 5- Requires Respondus LockDown Browser ne Left:1:36:13 Ralph King: Attempt 1 Question 7 (0.125 points) The company's required rate of return or weighted average cost of capital is 8%. After computing Payback Period, NPV, PI, and IRR, state whether you would accept or reject each project. Management's arbitrarily set payback period is 2.75 years. Project Bart details; Initial Outlay = $118,736; Cash Inflows = Year 1 $60,000 Year 2 $50,000 Year 3 $28,000. Compute Payback for Project Bart. (A) 2.0 years B) 2.25 years C) 2.31 years ( D) 2.42 years Question 8 (0.125 points) The company's required rate of return or weighted average cost of capital is 8%. After computing Payback Period, NPV, PI, and IRR, state whether you would accept or reject each project. Management's arbitrarily set payback period is 2.75 years. Project Homer details; Initial Outlay = $123,000; Cash Inflows = $30,000 per years for 5 years. Would Project Homer be accepted or rejected? A) Accepted B) Rejected Previous Page Next Page Page 2 of 12