Dundee Co. is considering Project "X" whose cash flows are shown below:

Year 0 1 2 3

CF -$1,200 $600 $550 $300

The company's capital structure is distributed equally between debt, preferred stock and common stock. It has also the following information:

1- After tax cost of debt: 2%

2- Preferred stocks are selling at $120 per share and pay a dividend of $5 per share

3- Common stocks are selling at $40 per share, pay a year-end dividend of $2 per share and grow at a constant rate of 10%.

The company is also considering another two projects "Y" & "Z" with the following information:

Project Y Z

NPV $96.00 $281.9

MIRR 6.26% 9.24%

IRR 12.41% 10.98%

Payback Period 1.44 years 2.33 Year

1- NPV of project "X" is?

2- MIRR of project "X" is?

3- The Pay-Back Period of "X" is?

4- The Discounted Pay-Back Period of project "X" is?

5- Assuming that the three projects X, Y & Z are independent, which project (s) should the company choose?

6- Assuming that the three projects X, Y & Z are Mutual Exclusive, which project (s) should the company choose?

7- Assuming that the three projects X, Y & Z are independent, then based on MIRR which project (s) should the company choose?

8- Assuming that the three projects X, Y & Z are Mutual Exclusive, then based on MIRR which project (s) should the company choose?

9- If IRR for "X" is 11.00%, and the three project X, Y & Z are Independent, which project (s) should the company choose?

10- Wilson Co. is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,000 and $8,500 at the end of Years 1 and 2, respectively. Project Y has an expected life of 4 years with after-tax cash inflows of $4,600 at the end of each of the next 4 years. Each project has a WACC of 11%. What is the equivalent annual annuity of the most profitable project?