Question: Question 37 (2.5 points) Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that


Question 37 (2.5 points) Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that requires an initial investment of $1,000. It will provide the cash inflows of $500 in year 1, $300 in year 2, $100 in year 3, and $20 each year hereafter. The required rate of return is 10% for this project. The discounted payback period for this project is years. OA) The project never pays back on a discounted basis B) 8 C) 6 D) 10 Question 38 (2.5 points) Consider the following scenario (the given information is the same as in the previous question): Suppose we have a project that requires an initial investment of $1,000. It will provide the cash inflows of $500 in year 1, $300 in year 2, $100 in year 3, and $20 each year hereafter. The required rate of return is 10% for this project. The profitability index for this project is OA) 0.9376 B) 1.0721 C) 0.9279 D) 1.0624 Question 33 (2.5 points) Suppose we have a 5-year project that has a discounted payback period of 5 years. We know that the NPV and the profitability index of the project would be and respectively. A) Negative; smaller than one 1 B) Zero; one C) Positive; larger than one OD) Positive; zero
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