1. A project has an initial cost of $95,800, a life of 7 years, and equal annual cash inflows. The required return is 8.7 percent. According to the profitability index decision rule, what is the minimum annual cash flow necessary to accept the project?

2. You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate.

Year	Project A			Project B
0		$23,000			$23,000
1		8,000			16,060
2		8,000			6,000
3		16,000			8,080

3. A project has the following cash flows :

Year	Cash Flows
0	$12,300
1	5,470
2	7,900
3	5,280
4	1,520

Assuming the appropriate interest rate is 9 percent, what is the MIRR for this project using the discounting approach?