1.
1. Blanchford Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.
                        WACC = 10%
Year:                   0                      1                     2          &n bsp;         3                   4               Cash flows:       -$1,000            $475               $475               $475            $475

        $482.16
        $496.38
        $505.69
        $519.05
        $524.72


2.
Tapley Dental Associates is considering a project that has the following cash flow data. What is the project's payback?

Year:             0               1           &nbs p;     2                     3                     4                     5       
Cash flows: -$1,000       $300           $310               $320              $330               $340


        2.11 years
        2.50 years
        2.71 years
        3.05 years
        3.21 years


3.
Ryngaert Medical Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.
                        WACC = 10%
Year:                   0                 &nbs p;        1                     2                     3                     4       
Cash flows:       -$1,000            $400               $405               $410               $415

        $241.24
        $255.83
        $268.54
        $274.78
        $289.84


4.
Rockmont Recreation Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

Year:                   0      & nbsp;                 1                     2                     3                     4       
Cash flows:       -$1,000            $250               $230               $210               $190


        -5.15%
        -3.44%
        -1.17%
        2.25%
        3.72%

Optional Information:
magna, Utah