1)

A fertilizer company wants to create an environmentally friendly fertilizer in a new manufacturing plant. The manufacturing plant is going to cost $81.60 million in today's dollars. The new fertilizer is likely to produce cash flows of $25.00 million for four years, starting in one year. The company can borrow at a rate of 9.00% to build this plant.

How much is the IRR (internal rate of return) of this project? Enter your answer in the following format: 0.1234; Hint: Answer is between 0.0797 and 0.0953

2)

A fertilizer company wants to create an environmentally friendly fertilizer in a new manufacturing plant. The manufacturing plant is going to cost $81.60 million in today's dollars. The new fertilizer is likely to produce cash flows of $25.00 million for four years, starting in one year. The company can borrow at a rate of 9.00% to build this plant.

How much is the NPV (net present value), in $ millions, of this project? Enter your answer in the following format: + or - 12.34; Hint: Answer is between -0.53 and -0.67

3)

Stacy and John lend small amounts to other students in need. Their yearly cashflows are shown below.

Both of them can borrow or save from a bank on campus at an annual rate of 10.00%.

Stacy	John	Year
-$300	-$405	0
-$387	$134	1
-$193	$134	2
-$100	$134	3
$600	$134	4
$600	$134	5
$850	$134	6
-$180	$0	7

How much is the MIRR (modified internal rate of return) of Stacy's project?