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1 . Project XX has the cash flows of - $ 8 0 0 , 1 , 9 0 0 , 2 , 2 0

1. Project XX has the cash flows of -$800,1,900,2,200, and -3,800.
a. Calculate XXs Net Present Value (NPV) at discount rates (WACC) of 0%,8%,15.5729%,27%,126.78%, and 150%.
b. What are XXs IRRs?
c. If the cost of capital were 10%, should the project be accepted or rejected?
2. Project K has a cost of $1,500 and cash flows of $700 per year for 3 years plus another $1,200 in Year 4. The projects cost of capital is 13%.
a. What are Ks regular and discounted paybacks?
b. Would the project be accepted if the company requires a payback of 3 years or less?
c. Would this be a good accept/reject decision, considering the NPV and/or the IRR?

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