View the step-by-step solution to:

1. It will cost $6,000 to acquire materials for a project. CF's are expected to be $3,600 a year for three years. What is the payback period?

1. It will cost $6,000 to acquire materials for a project. CF's are expected to be $3,600 a year for three years. What is the payback period?
A. 1.48 years
B. 1.67 years
C. 1.82 years
D. 1.95 years
E. 2.00 years


2. Project cash-flows are: cost: 200 year 1: 110 year 2: 121 discount rate is 10%. Find the NPV
A. -35
B. 0
C. 30
D. 35
E. 55


3. What is the PI for that project?
A. -1
B. 0
C. 1
D. 2
E. 1.21


4. Still regarding the above project, what is the IRR?
A. 1%
B. 2%
C. 5%
D. 8%
E. 10%


5. Regarding the same above project, consider this year 1 number, 110. What is this 110?
A. S-C
B. PCF
C. Expected value of S-C
D. Expected value of PCF



7. A project's average net income divided by its average book value is referred to as the project's average:
A. net present value.
B. internal rate of return.
C. accounting return.
D. profitability index.
E. payback period.




8. What is the future value of $7,189 invested for 23 years at 9.25 percent compounded annually?
A. $22,483.60
B. $27,890.87
C. $38,991.07
D. $51,009.13
E. $54,999.88



9. You just won the grand prize in a national writing contest! As your prize, you will receive $2,000 a month for ten years. If you can earn 7 percent per year, compounded monthly, what is this prize worth to you today?
A. $172,252.71
B. $178,411.06
C. $181,338.40
D. $185,333.33
E. $190,450.25


10. When you retire, you would like to be able to spend $50,000 per year for 25 years. Assume that you are currently 40 years from retirement and have $5,000 invested in a bank account that returns 6% per year. You also plan on making additional contributions to that account each year (starting 1 year from now) until your retirement date. How much do you need to contribute each year in order to meet your retirement goal?

t=0 t=1 t=2 .... t=40 t=41 .... t=65
5k Pmt Pmt Pmt -50k -50k
Retire
A. 11,043.49
B. 8,076.92
C. 3,797.70
D. 7,595.40
E. 3,843.43

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question