Question: Use the following data to answer Questions through 10. A company is considering the purchase of a copier that costs $5,000. Assume a required rate

 Use the following data to answer Questions through 10. A company

Use the following data to answer Questions through 10. A company is considering the purchase of a copier that costs $5,000. Assume a required rate of return of 10% and the following cash flow schedule: Year 1: $3,000. Year 2: $2,000. . 8. Year 3: $2,000. 6. What is the project's payback period? A. 1.5 years. B. 2.0 years. C. 2.5 years. 7. The project's discounted payback period is closest to: A. 1.4 years. B. 2.0 years. C. 2.4 years. What is the project's NPV? A. -$309 B. +$883. C. +$1,523. The project's IRR is closest to: A 10% B. 15% C. 20%. 10. What is the project's profitability index (PI)? A. 0.72 B. 1.18. C 1.72 11. An analyst has gathered the following information about a project: Cost: $10,000 Annual cash inflow: $4,000 Life: 4 years Cost of capital: 12% 9. 0 0

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