17. Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 10.00%

Year 0 1 2 3

Cash flows -$1,000 $450 $450 $450

a. 9.00%

b. 10.00%

c. 11.00%

d. 12.00%

e. 14.00%

18. How much would $5,000 due in 25 years be worth today if the discount rate were 5.0%?

a. $1,476.52

b. $1,124.16

c. $1,183.33

d. $1,245.61

e. $1,311.17

19. Bosio Inc.'s perpetual preferred stock sells for $97.50 per share and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?

a. 8.72%

b. 9.08%

c. 9.44%

d. 9.82%

e. 10.22%