Question $16$

$14$ pts

You're evaluating a project with the following cash flows: initial investment is $$86$ million dollars, and cash flows for years $1-3$ are $$10,$$$59$ and $$75$ million dollars, respectively. The firm's WACC is $9\%.$ What is this project's MIRR?

Enter your answer as a percentage, rounded to $2$ decimals, without the percentage sign. So$,$ if your answer is $0\mathrm{.}115678,$ just enter $11\mathrm{.}57.$

Question $17$

$14$ pts

A firm is considering the purchase of a machine which would represent an investment of $$20$ million, and would be depreciated in a straightline basis over $4$ years. Sales are expected to be $$14$ million per year, and operating costs $35\%$ of sales. The company has a tax rate of $40\%,$ and a WACC of $10\%.$ What is the company's free cash flow for year $1$ of this project?

Enter your answer in millions of dollars, rounded to $1$ decimal, and without the dollar sign. For example, if your answer is $10\mathrm{.}5678,$ enter $10\mathrm{.}6.$ Use the minus sign $(\text{'}-\text{'})$ if cash flow is negative.