1) Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 12.12 percent.The initial outlay is $397,900.

Year 1: $127,000

Year 2: $151,400

Year 3: $130,500

Year 4: $141,500

Year 5: $148,200

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

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2) Find the profitability index (PI) for the following series of future cash flows, assuming the companys cost of capital is 14.19 percent. The initial outlay is $493,459.

Year 1: $180,507

Year 2: $182,558

Year 3: $164,463

Year 4: $152,195

Year 5: $168,820

Round the answer to two decimal places.

Your Answer:

3) Find the Payback period for the following project:

	Project Y
Initial Outlay	$18,100
Year 1	$5,070
Year 2	$5,910
Year 3	$5,160
Year 4	$6,030

The answer should be calculated to two decimal places.

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4) The Black Bird Company plans an expansion. The expansion is to be financed by selling $61 million in new debt and $63 million in new common stock. The before-tax required rate of return on debt is 7.30% percent and the required rate of return on equity is 15.53% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

5) UPS preferred stock pays $17 in annual dividends. If your required rate of return is 7.85 percent, how much would you be willing to pay for one share of this preferred stock?

Round the answer to two decimal places.

Your Answer: