Question

Texts: $1,200 is received at the beginning of year 1, $2,200 is received at the beginning of year 2, and $3,300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, what will be their combined future value at the end of year 3? Options: 1) $12,520 2) $9,413 3) $8,342 4) $8,735 2. Below are the expected after-tax cash flows for Projects Y and Z. Both projects have an initial cash outlay of $20,000 and a required rate of return of 17%. Project Y Project Z Year 1: $12,000 $10,000 Year 2: $8,000 $10,000 Year 3: $6,000 $0 Year 4: $2,000 $0 Year 5: $2,000 $0 Project Y's IRR is: Options: 1) 12.51% 2) less than zero. 3) 22.51%. 4) less than 17%.

          Texts: $1,200 is received at the beginning of year 1, $2,200 is received at the beginning of year 2, and $3,300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, what will be their combined future value at the end of year 3? Options: 1) $12,520 2) $9,413 3) $8,342 4) $8,735 

2. Below are the expected after-tax cash flows for Projects Y and Z. Both projects have an initial cash outlay of $20,000 and a required rate of return of 17%.

Project Y
Project Z 
Year 1: $12,000 $10,000
Year 2: $8,000 $10,000
Year 3: $6,000 $0
Year 4: $2,000 $0
Year 5: $2,000 $0

Project Y's IRR is: Options: 1) 12.51% 2) less than zero. 3) 22.51%. 4) less than 17%.

Added by Andrew C.

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