A project that will provde annual cash flows of $2,650 for nine years costs $10,900 today.

a.At a required return of 8 percent, what is the NPV of the project? = 5654.25

b.At a required return of 24 percent, what is the NPV of the project?= -1451.42

c.At what discount rate would you be indifferent between accepting the project and rejecting it?

Piercy, LLC, has identified the following two mutually exclusive projects:YearCash Flow (A)Cash Flow (B)0$53,000$53,000129,00016,700223,00020,700317,50025,000412,60025,700

a-1.What is the IRR for each of these projects? 23.82, 21.97

a-2.If you apply the IRR decision rule, which project should the company accept? Project A

b-1.Assume the required return is 13 percent. What is the NPV for each of these projects?10532.28, 11078.44

b-2.Which project will you choose of you apply the NPV decision rule? Procject B

c-1.Over what range of discount rates would you choose Project A?

c-2.Over what range of discount rates would you choose Project B?

d.At what discount rate would you be indifferent between these two projects?

Doak Corp. is evaluating a project with the following cash flows:

Year Cash Flow

0 -$15,300

1 6,400

2 7,600

3 7,200

4 6,000

5 -3,400

The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.

Discount approch=

reinvestment approch=

combination approch=