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YEAR PROJECT A PROJECT Z 0 $(35,000) $(350,000) 1 17,000 110,000 2 17,000 110,00

ID: 2643243 • Letter: Y

Question

YEAR       PROJECT A        PROJECT Z   

      0         $(35,000)         $(350,000)

      1           17,000              110,000

      2           17,000              110,000

      3           16,000              105,000

      4           15,000              100,000

      5           14,000              100,000

Given the above data, what is the NPV of PROJECT Z? (Assume a WACC of 8%).

NPV = $175,000

NPV = $106,119

NPV = $89,325

NPV = $71,073

Given the above data what is the payback period for project A?

5 years

2.6 years

3.25 years

4.13 years

NPV = $175,000

NPV = $106,119

NPV = $89,325

NPV = $71,073

Given the above data what is the payback period for project A?

5 years

2.6 years

3.25 years

4.13 years

Explanation / Answer

NPV = $106,119

3.25 years

NPV = $106,119