Question # 1: Zellars, Inc. is considering two mutually exclusive projects, A and B. Project A costs $75,000 and is expected to generate $48,000 in year one and $45,000 in year two. Project B costs $80,000 and is expected to generate $34,000 in year one, $37,000 in year two, $26,000 in year three and $25,000 in year four. Zellars ,Inc's required rate of return for these projects is 10%. The net present value for Project A is:
A. $5,826
B. $6,347
C. $28.000
D. $9,458
Question #2: Same as one expect: The net present value for Project B is:
a. $18,000
b. $42,000
c. $34,238
d. $21,378
Question #3: Same as one expect: The internal rate of return for Project B is:
A. 18.64%
B. 16.77&
c. 20.70%
D. 26.74%