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: $9\mathrm{.}25\%$

Year $0123$

Cash flows $-$$$1,000$ $$470$ $$470$ $$470$

a$.18\mathrm{.}15\%$

b$.13\mathrm{.}67\%$

c$.12\mathrm{.}13\%$

d$.15\mathrm{.}59\%$

e$.19\mathrm{.}05\%$

Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?

WACC: $10\mathrm{.}75\%$

Year $0123$

Cash flows $-$$$800$ $$490$ $$490$ $$490$

a$.1\mathrm{.}90$ years

b$.2\mathrm{.}10$ years

c$.1\mathrm{.}10$ years

d$.1\mathrm{.}05$ years

e$.2\mathrm{.}90$ years

You were hired as a consultant to Quigley Company, whose target capital structure is $20\%$ debt, $10\%$ preferred, and $70\%$ common equity. The interest rate on new debt is $6\mathrm{.}50\%,$ the yield on the preferred is $6\mathrm{.}00\%,$ the cost of retained earnings is $14\mathrm{.}25\%,$ and the tax rate is $25\%.$ The firm will not be issuing any new stock. What is Quigley's WACC? Round final answer to two decimal places. Do not round your intermediate calculations.

a$.8\mathrm{.}38\%$

b$.11\mathrm{.}88\%$

c$.8\mathrm{.}91\%$

d$.10\mathrm{.}95\%$

e$.11\mathrm{.}55\%$

You were recently hired by Scheuer Media Inc. to estimate its cost of capital. You obtained the following data: D$1=$ $$0\mathrm{.}90$; P$0=$ $$40\mathrm{.}00$; g $=6\mathrm{.}00\%($constant$)$; and F $=5\mathrm{.}00\%.$ What is the cost of equity raised by selling new common stock?

a$.8\mathrm{.}51\%$

b$.8\mathrm{.}37\%$

c$.7\mathrm{.}95\%$

d$.8\mathrm{.}14\%$

e$.8\mathrm{.}25\%$

Thomson Media is considering some new equipment whose data are shown below. The equipment has a $3-$year tax life. Under the new tax law, the equipment is eligible for $100\%$ bonus depreciation, so it will be fully depreciated at t $=0.$ The equipment would have a positive pre$-$tax salvage value at the end of Year $3,$ when the project would be closed down. Also, additional net operating working capital $($NOWC$)$ would be required, but it would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the project's $3-$year life. What is the project's NPV$?$ Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC $10\mathrm{.}0\%$

Equipment cost $$60,000$

Required net operating working capital $($NOWC$)$ $$11,000$

Annual sales revenues $$54,000$

Annual operating costs $$28,000$

Expected pre$-$tax salvage value $$5,000$

Tax rate $25\mathrm{.}0\%$

a$.$ $$3,576$

b$.$ $$4,515$

c$.$ $$1,010$

d$.$ $$3,494$

e$.$ $$1,509$