Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

Project A requires an initial outlay at t = 0 of $5,000, and its cash flows are the same in Years 1 through 10. Its IRR is 15%, and its WACC is 8%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

Project L requires an initial outlay at t = 0 of $57,000, its expected cash inflows are $10,000 per year for 7 years, and its WACC is 9%. What is the project's payback? Round your answer to two decimal places.

A firm with a WACC of 10% is considering the following mutually exclusive projects:

0

1

2

3

4

5

Project 1	-$500	$75	$75	$75	$200	$200
Project 2	-$450	$200	$200	$140	$140	$140

Which project would you recommend?

Select the correct answer.

a. Both Projects 1 and 2, since both projects have NPV's > 0.

b. Project 2, since the NPV2 > NPV1.

c. Project 1, since the NPV1 > NPV2.

d. Both Projects 1 and 2, since both projects have IRR's > 0.

e. Neither Project 1 nor 2, since each project's NPV < 0.