Compute the NPV statistic for Project Y if the appropriate cost of capital is 11

Question

Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal place.)

Accepted

Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)

Rejected

Compute the discounted payback statistic for Project D if the appropriate cost of capital is 12 percent and the maximum allowable discounted payback is four years. (Do not round intermediate calculations and round your final answer to 2 decimal places. If the project does not pay back, then enter a "0" (zero).)

Should the project be accepted or rejected?

Rejected

Compute the IRR for Project F. The appropriate cost of capital is 13 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Rejected

Compute the PI statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal place.)

Explanation / Answer

1. PV of cash flows

Year Cash Flows Cumulative Cash flows

1 3342 3342

2 3685 7027

3 1375 8402

4 435 8837

NPV = 8837 - 8400 = 437

Accepted.

2. PV of cash flows

Year Cash Flows Cumulative Cash flows

1 879 879

2 797 1676

3 651 2327

4 441 2768

5 272 3030

Payback = 3 + 173/441 = 3.39

Accepted.

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