1. What is the net present value of a project that requires an initial investment of $96,000 and produces net cash flows of $22,000 per year for 7 years? Assume the discount rate is 14 percent.
2. What is the internal rate of return for a project that requires an initial outlay of $24,600 and generates a single cash inflow of $35,750 in 5 years?
3. Calculate the modified Internal rate of return for a project with the following cash flows. Assume a cost of capital of 13% Year Cash Flow 0 (25,000) 1 15,000 2 8,000 3 15,000