Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $38,900, $78,390, $63,090, $61,140, and $44,340, respectively. The project has an initial cost of $179,840 and the required return is 8.9 percent. What is the project’s NPV?

A classroom of students was asked to state the number of pets they have at home. Use the following data to determine the mode.  0, 2, 5, 3, 3, 1, 0, 1, 7, 2, 2, 3, 12, 2, 4, 2, 5, 10

Alt’s is contemplating the purchase of a new $271,000 computer-based order entry system. The system will be depreciated straight-line to zero over the system’s five-year life. The system will be worthless at the end of five years. The company will save $108,400 before taxes per year in order processing costs and will reduce its net working capital by $10,000 immediately. The net working capital will return to its original level when the project ends. The tax rate is 21 percent. What is the internal rate of return for this project?

A project with an initial cost of $30,400 is expected to provide cash flows of $10,500, $11,500, $14,600, and $9,100 over the next four years, respectively. If the required return is 8.9 percent, what is the project’s profitability index?

Stocks and bonds are financial securities that represent ownership of and loans to a corporation, respectively.

Mountain Frost is considering a new project with an initial cost of $247,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $24,300,$21,300, $27,400, and $18,700, respectively. What is the average accounting return?

A project that costs $22,500 today will generate cash flows of $4,700 per year for seven years. What is the project’s payback period?

Some people say that technology can change culture. Neil Postman worries that television:

Our firm is investing in its production capacity. The expansion will require a $760,000 investment in new property, plant, and equipment. The expansion will increase sales, which will necessitate an investment of $20,000 and $45,000 in new inventory and accounts receivable, respectively. Expanded sales will require more materials from our suppliers, which will increase our accounts payable by $40,000. What is the investment’s initial cost?

What is the price of a $1,000-bond that has a yield to maturity of 12.5 percent if it matures in 13 years and pays an 10 percent, semiannual coupon?