You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12 million

An investment project costs $21,500 and has annual cash flows of $6,500 for 6 years. If the discount rate is 15 percent, what is the discounted payback period?    A.  4.41 years B.  4.91 years C.  5.12 years D.  5.40 years E.  never

102.

You're trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $12 million, which will be depreciated straight-line to zero over its 4-year life. The plant has projected net income of $1,095,000, $902,000, $1,412,000, and $1,724,000 over these 4 years. What is the average accounting return?    A.  10.70 percent B.  15.63 percent C.  18.87 percent D.  21.39 percent E.  23.05 percent

103.

A firm evaluates all of its projects by applying the IRR rule. The required return for the following project is 21 percent. The IRR is _____ percent and the firm should ______ the project.        A.  16.05 percent; reject B.  16.05 percent; accept C.  24.26 percent; reject D.  26.30 percent; accept E.  26.30 percent; reject