# Work shown

Winter Wear is considering a 5-year project with an initial cost of \$211,000. The project will produce cash inflows of \$56,500 a year over the life of the project . What is the net present value if the required rate of return is 15.8 percent?

Which one of the following methods of analysis is most suited to analyzing mutually exclusive projects with differing initial costs?

The Candy Hut is considering a project with an initial cost of \$6,500. The project will produce cash flows of: \$2,000 in year 1, \$2,200 in year 2, \$2,400 in year 3, and \$2,500 in year 4. What is the payback period?

You are considering two mutually exclusive projects. Project A costs \$3.6 million, has a required return of 14.5 percent, and an IRR of 14.3 percent. Project B costs \$4.1 million, has a required return of 16 percent, and an IRR of 15.6 percent. Which project(s) should be accepted?

A project produces cash inflows of \$7,200 a year for 3 years. The PI is 1.02 at a discount rate of 14 percent. What is the initial cost of the project?