QUESTION 1
What is the net present value of a project with the following cash flows if the discount rate is 16 percent?
Year CFs
0 -964
1 360
2 338
3 423
4 171
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box

QUESTION 2
What is the Internal Rate of Return (IRR) for the following cash flows?
Year CFs
0 -1,000
1 100
2 200
3 350
4 800
Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

QUESTION 3
Which of the following is the correct definition of Internal Rate of Return (IRR)?
IRR is the rate at which Net Present Value (NPV) equals initial outlay.
IRR is the rate of return required by project's investors.
IRR is the same as Average Accounting Rate of Return.
IRR is the rate at which the Net Present Value (NPV) equals present value of all future cash flows.
IRR is the rate at which the present value of all future cash flows equals initial outlay.

QUESTION 4
Which one of the following methods of analysis ignores the time value of money?
Payback
Profitability index
Net present value
Internal rate of return
Modified Internal rate of return

QUESTION 5
What is the profitability index of a project with the following cash flows if the discount rate is 14 percent?
Year CFs
0 -659
1 1,100
2 368
3 348
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION 6
Which one of the following indicates that a project is expected to create value for its owners?
Positive IRR
Payback period greater than the cut-off period
Internal rate of return (IRR) that is less than the required rate of return
NPV that is greater than zero
Profitability index less than zero

QUESTION 7
A project has the following cash flows. What is the payback period?
Year CFs
0 -$468
1 $260
2 $78
3 $244
4 $177
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION 8
A project has the following cash flows. What is the payback period?
Year CFs
0 -$249
1 $43
2 $56
3 $41
4 $243
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION 9
What is the Modified Internal Rate of Return (MIRR) for the following cash flows? Assume that the required rate of return is 4%
Year CFs
0 -1,000
1 100
2 200
3 350
4 800
Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

QUESTION 10
What is the net present value of a project with the following cash flows if the discount rate is 13 percent?
Year CFs
0 -320
1 124
2 280
3 429
4 490
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 11
What is the net present value of a project with the following cash flows if the discount rate is 5 percent?
Year CFs
0 -754
1 908
2 556
3 278

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 12
What is the profitability index of a project with the following cash flows if the discount rate is 8 percent?
Year CFs
0 -1,037
1 161
2 533
3 620
4 153
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION 13
What is the profitability index of a project with the following cash flows if the discount rate is 10 percent?
Year CFs
0 -343
1 233
2 344
3 201
4 379
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION 14
ABC Inc. is considering a project with an initial cost of $1,323. The project will not produce any cash flows for the first four years. Starting in year five, the project will produce cash inflows of $686 a year for four years. If the discount rate of 15.5 percent, what is the project's net present value?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 15
Suppose a project has initial outlay of $12,000 and after-tax cash flows of $2,000 each year for first three years and $4,000 each year for the following three years. If the required rate of return is 6.50%, what is the equivalent annual annuity?
Enter your answer rounded off to two decimal points.

QUESTION 1 What is the net present value of a project with the fol...