1. MBC Inc. is considering a project with the following cash flows. The companys WACC is 10%, what is the projects modified internal rate of return (MIRR)? (recall MIRR is the discount rate that causes the PV of a projects terminal value (TV) to equal the PV of costs, and terminal value is the sum of the future value of cash inflows). Show step by step how you get your answer. (Not in excel).

Year Project A Cash Flow

0 -$70

1 400

2 -200

3 600

4 500

5 600

2. Tyson Products is considering an investment projects with the following cash flows:

Year Project A Cash Flow

0 -$10,000

1 40,000

2 90,000

3 30,000

4 60,000

The company has a 10% cost of capital. What is the projects discounted payback? If the required discounted payback is 2 years, should the company accept or reject the project using the discounted payback criteria? (Make sure you show step by step how you get the answer, not in excel.)