Reference no: EM133069671
1. A project has the following cash flows:
|
Year
|
Cash Flow
|
|
0
|
-$2,960
|
|
1
|
1,000
|
|
2
|
1,000
|
|
3
|
1,000
|
|
4
|
1,000
|
Its cost of capital is 10 percent. What is the project's net present value?
2.What is the modified internal rate of return of a project with cash flows of -10, 5, 5, and 5 in years 0, 1, 2, 3? Assume the required rate of return is 10%.
3. In periods 0-4, a project has the following cash flows: -3,000, 1000, 1000, 2,335, 500.Its cost of capital is 10 percent. What is the project's DISCOUNTED payback period?
4. In years 0, 1, 2, 3, and 4, a project has the following cash flows: -$3,000; 1,000; 1,000; 1,000; 1,000. The firm's cost of capital is 10 percent. What is the project's internal rate of return?
5. In periods 0-4, a project has the following cash flows: -3000, 1000, 1000, 1,059, 1000. It's cost of capital is 10 percent. What is the project's payback period?