Question: Quest Question 22. 22. CoveAuklaOoglu, Inc. is considering a project which has net cash flows (the same as free cash flows) given below: Year CF

Quest

Question 22.22. CoveAuklaOoglu, Inc. is considering a project which has net cash flows (the same as free cash flows) given below: Year CF ($) 0 -1,000 (Initial Outlay) 1 500 2 400 3 300 4 100 Given that the companys WACC is 10%, what is the companys NPV? (Points : 3.4)

$78.82 $109.45 $49.18 $54.06

Question 23.23. Garrod Dickens wants to calculate the IRR for the above project (use information in Question 22) for CoveAuklaOoglu, Inc. His answer would be: (Points : 3.4)

11.8% 14.5% 12.45% 13.02%

Question 24.24. Garrod Dickens also wants to calculate the MIRR for the above project (use information in Question 22) for CoveAuklaOoglu, Inc. If the reinvestment rate is the WACC in Question 22, his answer would be: (Points : 3.4)

13.28% 15.07% 10.69% 12.11%

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