Q1. Project L requires an initial outlay at t = 0 of $30,000, its expected cash inflows are $8,000 per year for 9 years, and its

WACC is 10%. What is the project's discounted payback? Do not round intermediate calculations. Round your answer to two decimal places.

Q2. Project L requires an initial outlay at t = 0 of $57,176, its expected cash inflows are $10,000 per year for 9 years, and

its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.

Q3. Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $15,000 per year for 9 years, and

its WACC is 12%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

Q4. company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated with the

following cash flows:

5

6

Project A

• $300
• $387
• $193
• $100 $600

$600

Project B

-$405 $133

$133

$133

$133

$133

$850

$133

-$180 $0

1. What is each project's NV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $
2. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A:

%

Project B:

%

c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A:

%

Project B:

%

d. From your answers to parts a-c, which project would be selected?

-Select- s

If the WACC was 18%, which project would be selected?

[-Select-

e. Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.

Discount Rate

NPV Project A

NPV Project B

0%

$

5

10

12

15

18.1

23.65

f. Calculate the crossover rate where the two projects' NPVs are equal. Do not round intermediate calculations. Round your answer to two decimal places.

%

g. What is each project's MIRR at a WACC of 18%? Do not round intermediate calculations. Round your answers to two decimal places.

Project A:

%

Project B:

%

Q5. A project has annual cash flows of $7,500 for the next 10 years and then $11,000 each year for the following 10 years.

The IRR of this 20-vear project is 13.69%. If the firm's WACC is 8%, what is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.