B

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscapings cost of capital is 12.38 percent. What is the NPV of a project if the initial costs are $2,197,619 and the project life is estimated as 11 years? The project will produce the same after-tax cash inflows of $377,452 per year at the end of the year.

Round the answer to two decimal places.

Your Answer:

C

Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 12.25 percent.The initial outlay is $341,200.

Year 1: $162,300

Year 2: $165,900

Year 3: $199,200

Year 4: $172,700

Year 5: $121,400

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Your Answer:

D

Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the companys project, assuming the companys cost of capital is 9.94 percent. The initial outlay for the project is $447,076. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $155,482

Year 2: $126,267

Year 3: $214,337

Year 4: $207,449

Round the answer to two decimal places.

Your Answer: