16.) A Company, Inc. (ACI) is considering a project with the following projected annual cash flows. ACI has a minimum IRR of 20% for projects of this risk class. You may use the template below to compute the results Time CF 0 CF 1 CF 2 CF 3 IRR Cash-Flow 150000 110000 50000 60000 MIRR Compute the Internal Rate of Return of the Cash Flows Would you accept the project based on this IRR? What is the Net Present Value of the Cash Flows if discounted at the exact IRR that you computed above (assuming your computation is correct)? ACI has a a reinvestment rate of 6%year. Based on this information, compute the Modified Internal Rate of Return for the project Based on the MIRR, would you accept this project? 17) You are considering the purchase of Superior Offshore Oil International, Inc. (stock symbol DEEP) common stock. You consult Yahoo Finance and find that the stock has a (beta) of 3.0. Further research indicates that the current risk free rate of return is 30% and the expected return on the entire stock market is 13% Use the Capital Asset Pricing Model to find the following: What is the expected rate of return on DEEP's stock? What is the Market Risk Premium? 6 of 8