QUESTION 1

1. Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

   Year	0	1	2	3	4	5
   Cash flows	-$8,750	$2,000	$2,025	$2,050	$2,075	$2,100

   	a.	5.41%
   	b.	4.49%
   	c.	5.47%
   	d.	5.03%
   	e.	6.02%

0.5 points

QUESTION 2

1. Simkins Renovations Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

   Year	0	1	2	3	4
   Cash flows	-$775	$300	$290	$280	$270

   	a.	14.43%
   	b.	18.17%
   	c.	21.02%
   	d.	17.81%
   	e.	15.49%

0.5 points

QUESTION 3

1. Tuttle Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected.

   WACC:	12.00%
   Year	0	1	2	3	4
   Cash flows	-$1,000	$350	$350	$350	$350

   	a.	50.46
   	b.	74.43
   	c.	68.12
   	d.	63.07
   	e.	56.13

0.5 points

QUESTION 4

1. Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback?

   Year	0	1	2	3
   Cash flows	-$425	$300	$325	$350

   	a.	1.38 years
   	b.	1.30 years
   	c.	1.07 years
   	d.	1.19 years
   	e.	1.32 years

0.5 points

QUESTION 5

1. Barry Company is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected.

   WACC:	10.00%
   Year	0	1	2	3	4	5
   Cash flows	-$1,100	$400	$390	$380	$370	$360

   	a.	$365.08
   	b.	$299.02
   	c.	$434.62
   	d.	$399.85
   	e.	$347.70