QUESTION 8 Computer Consultants Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's MIRR? Note that a project's MIRR can be less than the cost of capital and even negative), in which case it will be rejected. 1 2 3 $450 $450 $450 T-10.00% Year 0 Cash flows -$1,000 a. 9.32% b. 10.35% OC 12.78% d. 11.50% Oe. 14.20% QUESTION 9 Farmer Co. is considering Projects S and I, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. If the decision is made by choosing the project with the shorter payback, some value may be forgone. How much value will be lost in this instance? Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost. r10.25% 0 1 2 3 4 Year CFS $500 $800 $0 CFL -$950 -S2,100 $0 $800 $400 $800 $1,000 a $24.14 b. $36.42 c. $29.80 Od. $26.82 e. $33.11 QUESTION 10 McGlothin 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 -$1,150 $500 $500 $500 a. 1.86 years b.2.07 years Oc2.53 years d. 2.30 years O.2.78 years QUESTION 11 Kasper Film Co. is selling off some old equipment it no longer needs because is associated project has come to an end. The equipment originally cost $22,500, of which 75% has been depreciated. The firm can sell the used equipment today for $6,600, and its tax rate is 10%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale $5,558 O $5,850 $6,210 $6,450 $6,772