Question: Quantitative Questions: 15 marks each, 6. Consider two projects with the following cash flows: Project 1 Project 2 Year Cash Flow Cash Flow 0 -$2,000

Quantitative Questions: 15 marks each, 6. Consider two projects with the following cash flows: Project 1 Project 2 Year Cash Flow Cash Flow 0 -$2,000 $1,900 1 500 1,100 2 700 900 3 800 800 4 1,000 600 5 1,100 400 Answer: a) What is the NPV @ 10% of project 2? b) What is the IRR of project 2? c) What is the MIRR @ 9% of project 1 with a re-investment rate of 5%? d) What is the Payback period of project 1? e) What is the crossover point for the two projects? 22

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