Project A Project B Project C Project D Project E

Today (20,000) (30,000) (8,000) (3,000) (6,000)

Year 1 10,000 2,000 1,000 2,000 750

Year 2 5,000 4,000 2,000 2,000 1,500

Year 3 2,500 6,000 3,000 2,000 2,250

Year 4 2,000 8,000 4,000 2,000 3,000

Year 5 1,000 10,000 5,000 2,000 3,750

Year 6 500 12,000 (6,000)

What is the Modified IRR of Project D if the cost of capital is 9%?

a) 8.18% b) 12.7% c) 24.2% d) 48.3%

What is Project Bs Payback Period?

a) 3.5 years b) 4 years c) 4.5 years d) 5 years

What is the Crossover Rate between Project B and C?

a) 4.5% b) 8.25% c) 12.5% d) 18.8%