1. (IRR calculation) Determine the IRR on the following projects:

a. An initial outlay of $10,000 resulting in a single free cash flow of $17,182 after 8 years (Round to two decimal places.) ANSWER:

b. An initial outlay of $10,000 resulting in a single free cash flow of $48,077 after 10 years (Round to two decimal places.) ANSWER:

c. An initial outlay of $10,000 resulting in a single free cash flow of $114,943 after 20 years(Round to two decimal places.) ANSWER:

d. An initial outlay of $10,000 resulting in a single free cash flow of $13,680 after 3 years (Round to two decimal places.) ANSWER:

2. (IRR) Your investment advisor has offered you an investment that will provide you with one cash flow of $10,000 at the end of 20 years if you pay premiums of $200 per year at the end of each year for 20 years. Find the internal rate of return on this investment.

What is the internal rate of return on this investment? % (Round to two decimal places.) ANSWER:

3. CrochetCo is considering an investment in a project which would require an initial outlay of $350,000 and produce expected cash flows in years 15 of $95,450 per year. You have determined that the current after-tax cost of the firm's capital (required rate of return) for each source of financing is as follows:

Cost of Long-Term Debt	7%
Cost of Preferred Stock	11%
Cost of CommonStock	15%

Long-term debt currently makes up 25% of the capital structure, preferred stock 15%, and common stock 60%. What is the net present value of this project? ANSWER:

A.

$5,983

B.

$2,149

C.

$11,568

D.

$9,306

ANSWER EACH (ALL THREE) QUESTION CORRECTLY AND FULLY!!!