4.Consider the following annual cash flows: Cash Flows (in thousands of dollars) 0 -2,000 1,200 2 1,500 3 1,800 Using a cost of capital of 15%,compute this project's NPV. a)$5,361,000 b)$3,548,000 c)$3,361,000 d)$1,361,000 Answer:(d) 5.Consider the following annual cash flows: Year Cash Flows (in thousands of dollars) 0 -5,000 1 4,100 2 3,800 3 3,500 Using a cost of capital of 12%,compute this project's NPV. a)$14,181,000 b)$9,181,000 c)$4,181,000 d)$3.548.000 Answer:(c) 6.A negative sign in front of a cash-flow forecast for a particular year means that it is an a)inflow b)outflow c)indeterminate flow d)more information is required to make this determination Answer:(b) 6-26-2 4. Consider the following annual cash flows: Year Cash Flows (in thousands of dollars) 0 –2,000 1 1,200 2 1,500 3 1,800 Using a cost of capital of 15%, compute this project's NPV. a) $5,361,000 b) $3,548,000 c) $3,361,000 d) $1,361,000 Answer: (d) 5. Consider the following annual cash flows: Year Cash Flows (in thousands of dollars) 0 –5,000 1 4,100 2 3,800 3 3,500 Using a cost of capital of 12%, compute this project's NPV. a) $14,181,000 b) $9,181,000 c) $4,181,000 d) $3,548,000 Answer: (c) 6. A negative sign in front of a cash-flow forecast for a particular year means that it is an ________. a) inflow b) outflow c) indeterminate flow d) more information is required to make this determination Answer: (b)