9 and 10

Use the following information for the next 2 questions. Frieda Inc. is considering a capital expansion project. The initial investment of undertaking this project is $114,500. This expansion project will last for five ears. The net operating cash flows from the expansion project at the end of year 1, 2, 3, 4 and 5 are estimated to be $19,850, $24,780, $33,960, $51,236 and $55,780 respectively. Frieda's cost of capital is 18%. 9. What is the NPV of undertaking this project? a. -$8,403.34 b. $1,827.68 C. -$2,360.85 d. $7,817.34 Please Show Your Calculation Steps Below 10. What is the modified internal rate of return (MIRR) if Frieda Inc. undertakes this project? Assuming that the positive cash inflow from undertaking this project will be reinvested at the cost of capital. a. 17.28% b. 24.08% C. 19.23% d. 16.22% Please Show Your Calculation Steps Below