2.
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal place.)

Project Y 





Time: 
0 
1 
2 
3 
4 
Cash flow 
–$8,900 
$3,530 
$4,360 
$1,700 
$480 

Should the project be accepted or rejected? 


3.
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 9 percent, and that the maximum allowable payback and discounted payback statistics for the project are 2.0 and 3.0 years, respectively.









Time: 
0 
1 
2 
3 
4 
5 
6 
Cash flow 
–$4,600 
$1,160 
$2,360 
$1,560 
$1,560 
$1,360 
$1,160 

Use the discounted payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)

Should it be accepted or rejected? 
4.
Compute the payback statistic for Project A if the appropriate cost of capital is 9 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)

Project A 






Time: 
0 
1 
2 
3 
4 
5 
Cash flow 
–$1,800 
$670 
$720 
$680 
$460 
$260 

Should the project be accepted or rejected? 



5.
Compute the NPV for Project K if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project K 






Time: 
0 
1 
2 
3 
4 
5 
Cash flow 
–$11,900 
$5,950 
$6,950 
$6,950 
$5,950 
–$14,900 

Should the project be accepted or rejected? 


6.
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3.0 and 3.5 years, respectively.








Time: 
0 
1 
2 
3 
4 
5 
Cash flow 
–$238,000 
$66,100 
$84,300 
$141,300 
$122,300 
$81,500 

Use the discounted payback decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Should it be accepted or rejected? 

7.
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 7 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively.









Time: 
0 
1 
2 
3 
4 
5 
6 
Cash flow 
–$5,100 
$1,240 
$2,440 
$1,640 
$1,560 
$1,440 
$1,240 

Use the payback decision rule to evaluate this project. (Round your answer to 2 decimal places.)

Should it be accepted or rejected? 
8.
Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 11 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively.








Time: 
0 
1 
2 
3 
4 
5 
Cash flow 
–$280,000 
$56,800 
$75,000 
$123,000 
$113,000 
$72,200 

Use the MIRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Should it be accepted or rejected? 
9.
Compute the IRR for Project F. The appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project F 





Time: 
0 
1 
2 
3 
4 
Cash flow 
–$11,100 
$3,400 
$4,230 
$1,570 
$2,200 

Should the project be accepted or rejected? 

10.
Compute the MIRR statistic for Project J if the appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project J 






Time: 
0 
1 
2 
3 
4 
5 
Cash flow 
–$2,700 
$860 
$2,330 
–$690 
$810 
–$270 

Should the project be accepted or rejected? 






