1. Suppose your company has the following estimated cash flows for Project A. The company has a WACC of 15%. Please notice that the CF0 for this project is NEGATIVE.

What is the project's IRR? (Instructor hint: How to calculate IRR? Please go to the class slides on chapter 11 to review the process. There are multiple ways to figure IRR out. For example, you can use the formula. You can use the financial calculator, or you can use the excel )

YearProject A

0 $ -280

1 $ 120

2$ 170

3 $ 160

A.14.18%

B.26.53%

C.29.45%

D.10.09%

2. Chapter 11 question: When we are assessing whether to undertake a project or not one of the methods we use calculates the sum of the present values of all the cash inflows and outflows of the project. What is this called?

	A.	IRR
	B.	YTM
	C.	NPV
	D.	Coupon rate