7. In capital budgeting, which of the measures represents the benefits-to-cost ratio?
(a. NPV b. IRR c. MIRR d. PI),
8. In capital budgeting, which of the measures can never be negative?
(a. NPV b. IRR c. MIRR d. PI),
9. You are reviewing a new project and have estimated the following cash flows:
Year 0: CF = -170,000; Year 1: CF = 64,120; Year 2: CF = 70,800; Year 3: CF = 92,330
If the required rate of return is 12%, calculate IRR= ().
a. 25 b. 6 c. 17 d. 8.7 e. 9.5 f. 10.5 g. 11.8 h. 12 i. 15.0 j. 16 %
10. Following the above question, the NPV of the project is
a.
$9,410 b. $12,000 c. $15,000 d. $20000 e. 30,000 f. $40,000 g. $50,000
11. Following No. 9. should the project be a. accepted b. rejected c. it cannot be decided.