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P9-1 Calculating Payback [LO2) What is the payback period for the following set of cash flows? Your Cash Flow -$ 4.200 0 * 2.100 1400 1,600 1.500 Multiple Choice O 256 years 246 years 244 years 239 years O 2.74 years Saved P9-4 Calculating Discounted Payback [LO3) An investment project has annual cash inflows of $6,600. $7,700, $8.500, and $9,800, and a discount rate of 11 percent. Required: What is the discounted payback period for these cash flows if the initial cost is $9,500? (Do not round your intermediate calculations.) Multiple Choice O 1.07 years 3.14 years 1.57 years 2.32 years 0.57 years P9-8 Calculating NPV [LO1) A firm evaluates all of its projects by using the NPV decision rule. Year 1 2 3 Cash Flow -$29,000 19,000 14,000 8,000 Required: (a)At a required return of 30 percent, what is the NPV for this project? Click to select) (b)At a required return of 35 percent, what is the NPV for this project? (Click to select) P9-9 Calculating NPV and IRR (L01,5) A project that provides annual cash flows of $15,500 for 7 years costs $70738 today Required: Cif the required return is 18 percent, what is the NPV for this project? Coo (Oetermine the IRR for this project. Coto What is the IRR of the following set of cash flows? Year 0 1 2 3 Cash Flow -$8,657 4,300 4.500 4.300 Nm Multiple Choice O 24.42 25.14 23.46% 23.94% 22.74% LE Next > P9-15 Calculating Profitability Index [LO7) Year NO Cash Flow -$7,500 3,800 5,600 3,300 3 Required: What is the profitability index for the cashflows if the relevant discount rate is 8 (a) percent? cos (Click to select) : What is the profitability index for the cashflows if the relevant discount rate is 18 (b) percent? Click to select) What is the profitability index for the cashflows if the relevant discount rate is 24 percent? (c) (Click to select) P9-8 Calculating NPV (LO1j A firm evaluates all of its projects by using the NPV decision rule. Year 1 2 3 Cash Flow -$29,000 19,000 14,000 8,000 Required: (a)At a required return of 30 percent, what is the NPV for this project? (Click to select) (b)At a required return of 35 percent, what is the NPV for this project? (Click to select) e P9-15 Calculating Profitability Index [LO7) Year 1 2 3 Cash Flow -$7,500 3,800 5,600 3,300 Required: What is the profitability index for the cashflows if the relevant discount rate is 8 (o) percent? cos (Click to select) : What is the profitability index for the cashflows if the relevant discount rate is 18 (b) percent? Click to select) What is the profitability index for the cashflows if the relevant discount rate is 24 percent? (c) (Click to select) What is the IRR of the following set of cash flows? Year 0 1 Cash Flow -$8,657 4,300 4,500 4.300 2 3 Multiple Choice 24 425 25.14% 23.46% 23.94% 22.74% Next >

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