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 $01234$

Cash flows $-$$$625$ $$300$ $$290$ $$280$ $$270$

a$.82\mathrm{.}40\%$

b$.16\mathrm{.}21\%$

c$.20\mathrm{.}60\%$

d$.69\mathrm{.}18\%$

e$.29\mathrm{.}94\%$

Simms Corp. 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 or negative, in both cases it will be rejected.

Year $0123$

Cash flows $-$$$925$ $$410$ $$410$ $$410$

a$.32\mathrm{.}97\%$

b$.37\mathrm{.}51\%$

c$.15\mathrm{.}72\%$

d$.9\mathrm{.}96\%$

e$.10\mathrm{.}99\%$

Mulroney Corp. is considering two mutually exclusive projects. Both require an initial investment of $$10,600$ at t $=0.$ Project X has an expected life of $2$ years with after$-$tax cash inflows of $$6,600$ and $$7,600$ at the end of Years $1$ and $2,$ respectively. In addition, Project X can be repeated at the end of Year $2$ with no changes in its cash flows. Project Y has an expected life of $4$ years with after$-$tax cash inflows of $$4,300$ at the end of each of the next $4$ years. Each project has a WACC of $8\%.$ Using the replacement chain approach, what is the NPV of the most profitable project? Do not round the intermediate calculations and round the final answer to the nearest whole number.

a$.$ $$3,765$

b$.$ $$4,550$

c$.$ $$4,254$

d$.$ $$3,642$

e$.$ $$4,427$

Florida Car Wash is considering a new project whose data are shown below. The equipment to be used has a $3-$year tax life. Under the new tax law, the equipment is eligible for $100\%$ bonus depreciation, so it will be fully depreciated at t $=0.$ At the end of the project's $3-$year life, it would have zero salvage value. No change in net operating working capital $($NOWC$)$ would be required for the project. Revenues and operating costs will be constant over the project's life, and this is just one of the firm's many projects, so any losses on it can be used to offset profits in other units. If the number of cars washed declined by $40\%$ from the expected level, by how much would the project's NPV change? $($Hint: Note that cash flows are constant at the Year $1$ level, whatever that level is$.)$ Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC $10\mathrm{.}0\%$

Equipment cost $$42,000$

Number of cars washed $3,240$

Average price per car $$25\mathrm{.}00$

Fixed op$.$ cost $$7,000$

Variable op$.$ cost$/$unit $($i$.$e$.,$ VC per car washed$)$ $$5\mathrm{.}375$

Tax rate $25\mathrm{.}0\%$

a$.-$$$63,251$

b$.-$$$49,172$

c$.-$$$42,216$

d$.-$$$52,182$

e$.-$$$47,438$