A) Dandara Shop is evaluating two mutually exclusive projects Habana and Bandaya. The initial investment for each project is 950,000. Habana will generate cash inflows equal to 215,625 at the end of each of the next five years; Bandaya will generate only one cash inflow in the amount of 1,499,500 at the end of the 5th year. The required rate of return of Dandara Shop is 10 percent. Which project should Dandara Shop purchase?"

Habana

Bandaya

Both projects

None of the two projects

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B) Which of the following statements about the project must be correct assuming that the project generates its largest cash flows in the early years of its life rather than near the end of its life?

The project's traditional payback period will be greater than the years expected to recover the original investment.

The net present value of the project is not as sensitive to changes in the firm's required rate of return as the net present value of a project that generates large cash flows later in its life.

The required rate of return of the project must be revised throughout its life.

negative.

The net present value of the project must be negative

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C) The MIRR is the discount rate that makes the:

future value of project's terminal value to equal the future value of its cash outflows

present value of the project's terminal value

to equal the present value of its cash outflows

future value of the project's terminal value

to equal the present value of its costs

present value of the project's terminal value

to equal the future value of its costs