A company is considering a project with an IRR of 10.9% and a MIRR of 10.52%. The project costs $10,000 and is expected to generate the following cash flows: Year Cash flow 1 $5,000 2 4,500 3 X

17. The projects year-3 cash flow is: *

A. $6,500

B. $9,500

C. $2,500

D. $1,500

E. None of the above

The WACC is: *

A. 0%

B. 10%

C. 10.2%

D. 12.45%

E. None of the above

The projects NPV is: *

A. $142.75

B. $129.77

C. $153.25

D. -$29.77

E. None of the above

Which of the following statements about NPV and IRR is least accurate? *

A. The IRR can be positive even if the NPV is negative.

B. When the IRR is equal to the cost of capital, the NPV will be Zero.

C. The NPV will be positive if the IRR is less than the cost of capital.

D. NPV assumes the cash flows can be reinvested at the projects cost of capital.

E. None of the above