Question: Fin 401 is considering two projects. Its WACC is 10%. Project A Project B Year 0 (investment) -1000 -2000 Year 1 500 400 Year 2

Fin 401 is considering two projects. Its WACC is 10%.

Project A

Project B

Year 0 (investment)

-1000

-2000

Year 1

500

400

Year 2

600

-500

Year 3

700

3000

What is MIRR (Modified Internal Rate of Return) of Project B (WACC is 10%)?

What is the payback period of Project A?

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