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#7 Project Alpha promises equal and consecutive payments of $65,000 over a 5 year period. The required return is 12.50% What is the MIRR and

#7 Project Alpha promises equal and consecutive payments of $65,000 over a 5 year period.
The required return is 12.50%
What is the MIRR and would you accept or reject the project?
a MIRR = 12.50% reject
b MIRR = 12.16% reject
c MIRR = 12.16% accept
d MIRR = 12.50% accept
The weigted average cost of capital =
Period Cash Flows FVIF FV5 Revised Cfs PVIF NPV
Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow
#8 0 ($654,980)
1 $275,000
2 $285,000
3 $295,000
4 $305,000
5 $315,000 Period
The WACC = 13.00%
What is the Profitability Index and should you rejecr or accept the project?
a PI = 1.47% accept
b PI = 1.47% reject
c PI = 1.57% reject
d PI = 1.57% accept
Year 0 1 2 3 4 5

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