1. A firm with a 10.5 percent cost of capital is considering a project for this year's capital budget. The project's expected after-tax cash flows are as follows:

Year:	0	1	2	3	4
Cash flow:	-$15,000	$7,100	$6,800	$6,900	$7,100

Calculate the project'smodifiedinternal rate of return (MIRR).

2.Project Z has an initial cost of $59,849, and its expected net cash inflows are $14,750 per year for 9 years. The firm has a WACC of 14 percent, and Project Z's risk would be similar to that of the firm's existing assets. Calculate thediscountedpayback period of Project Z.