Question
1. Calculate the NPV for the following project if the firm's cost of capital is 8.2%. Year 0 1 2 3 4 5 Cash Flow
1. Calculate the NPV for the following project if the firm's cost of capital is 8.2%.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | -$3,250,000 | $625,000 | $750,000 | $1,250,000 | $1,000,000 | $975,000 |
A. $274,698 B. $342,130 C. $384,956 D. $196,999
2.Assuming that the cash flows are reinvested at the company's cost of capital, which is 6.8%, what is the Modified Internal Rate of Return (MIRR) for the following project?
| Year | 0 | 1 | 2 | 3 |
| Cash Flow | -$600,000 | $300,000 | $150,000 | $175,000 |
A. 4.127% B. 9.836% C. 10.241% D. 6.507%
3.Calculate the Payback Period for the following investment.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash Flow | -$3,250,000 | $625,000 | $750,000 | $1,250,000 | $1,000,000 | $975,000 |
A. 2.875 years B. 2.325 years C. 3.625 years D. 4.175 years
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Fundamentals Of Multinational Finance
Authors: Michael Moffett
6th Global Edition
1292215216, 978-1292215211
