1) Aproject requires an initial investment of $60 million and will then generate the same cash flow every year for 9 years. The project has an internal rate of return of 17% and a cost of capital of 10%.

What is the project's NPV (in $ million)?

2)You've estimated the following cash flows (in $) for a project:

Year	Cash flow
0	-56,000
1	128,800
2	-67,200

The required return for the project is 11%.

What is the MIRR for the project?

3) Southwest Airlines just bought a new jet for $26,000,000. The jet falls into the 7-year MACRS category, with the following depreciation rates (half-year convention):

Year	1	2	3	4	5	6	7	8
Depr. rate	14.29%	24.49%	17.49%	12.49%	8.93%	8.92%	8.93%	4.46%

A. What was the depreciation in year 5?

B What is the book value after year 5?