Question 1

Find the net present value (NPV) for a proposed project costing $16,333. Assume that the appropriate cost of capital for projects of this risk level, at this company is 5.98%, and the estimated cash flows for the life of the project are as follows:

Year 1	Year 2	Year 3	Year 4	Year 5
$5,566	$5,838	$3,890	$8,167	$14,040

Question 2

Sandia corporation is considering two mutually exclusive projects. For our purposes, we will call them projects A and B. Project A is expected to cost $40,112, and project B is expected to cost $56,322. Each project's expected cash flows are presented below. Both project A and B have similar risks to all other projects at Sandia. And the weighted average cost of capital for Sandia is 11.88%. Calculate the net present value of both projects, and enter in the box below how much the value of the firm is expected to increase based on this capital budget (please enter the amount to the nearest penny).

	Project A	Project B
Year 1	$8,440	$8,012
Year 2	$10,037	$13,228
Year 3	$10,766	$9,703
Year 4	$12,244	$14,390
Year 5	$14,412	$16,387

Question 3

Find the modified internal rate of return (MIRR) for a proposed project costing $12,844 (if you calculate an MIRR of 20.22%, please enter 20.22 - do not include the % symbol, and use at least two decimal places). Assume that the appropriate cost of capital for projects of this risk level, at this company is 10.64%, and the estimated cash flows for the life of the project are as follows: