Question: Exhibit 2 A firm is considering a project with the following cash flows. Year 0 1 2 3 Cash Flows -$800 $200 $500 $1,000 a)

Exhibit 2

A firm is considering a project with the following cash flows.

Year

0

1

2

3

Cash Flows

-$800

$200

$500

$1,000

a) Refer to Exhibit 2. If the firms WACC is 10%, what is the projects NPV?

b) Refer to Exhibit 2. What is the projects IRR (to one decimal place, e.g., 5.1%)?

c) Refer to Exhibit 2. If the firms WACC is 10%, what is the projects MIRR (to one decimal place, e.g., 5.1%)?

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