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Prepare in Microsoft® Excel® or Word.
• Ch. 9: Questions 7 & 8 (Questions and Problems section)
• Ch. 10: Questions 3 & 13 (Questions and Problems section)
• Ch. 11: Questions 1 & 7 (Questions and Problems section)
Format your assignment consistent with APA guidelines if submitting in
Microsoft® Word.
Click the Assignment Files tab to submit your assignment.
• Ch. 9: Questions 7 & 8 (Questions and Problems section)
7. Calculating IRR [LO5] A firm evaluates all of its projects by
applying the IRR rule. If the required return is 14 percent, should the
firm accept the following project?
8. Calculating NPV [LO1] For the cash flows in the previous problem,
suppose the firm uses the NPV decision rule. At a required return of 11
percent, should the firm accept this project? What if the required return
is 24 percent?
• Ch. 10: Questions 3 & 13 (Questions and Problems section)
3. Calculating Projected Net Income [LO1] A proposed new
investment has projected sales of $635,000. Variable costs are 44
percent of sales, and fixed costs are $193,000; depreciation is $54,000.
Prepare a pro forma income statement assuming a tax rate of 35 percent.
What is the projected net income?