Q4. The estimated annual after-tax cash flows of a proposed investment are shown below: Year 1: $10,000
Year 2: $15,000
Year 3: $18,000 After-tax cash flow from sale of investment at the end of year 3 is $120,000 The initial cost of the investment is $100,000, and the required rate of return is 12%. The net present value (NPV) of the project is closest to: A) $19,113. B) $63,000. C) -$66,301.
Q5. Fisher, Inc., is evaluating the benefits of investing in a new industrial printer. The printer will cost $28,000 and increase after-tax cash flows by $8,000 during each of the next five years. What are the respective internal rate of return (IRR) and net present value (NPV) of the printer project if Fisher’s required rate of return is 11%? A) 13.20%; $1,567. B) 17.97%; $5,844. C) 5.56%; −$3,180. | 
发表于 2008-12-30 16:13
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