6).Compute the NPV for Project M if the appropriate cost of capital is 7 percent.(Negative amount should be indicated by a minus sign.Do not round intermediate calculations and round your finalanswer to 2 decimal places.)

Project M

Time: 0 1 2 3 4 5

Cash flow: -$1,700 $490 $620 $660 $740 $240

NPV=

Accepted or Rejected?

7).Compute the MIRR statistic for Project J if the appropriate cost of capital is 8 percent.(Do not round intermediate calculations and round your finalanswer to 2 decimal places.)

Project J

Time: 0 1 2 3 4 5

Cash flow: -$1,500 $500 $1,730 -$570 $450 -$150

MIRR=

Accepted or Rejected?

8).KatyDid Clothes has a $140 million (face value) 30-year bond issue selling for 105 percent of par that carries a coupon rate of 14 percent, paid semiannually.

What would be Katydid's before-tax component cost of debt?(Round your answer to 2 decimal places.)

Cost of Debt % =