ABC Inc. is considering investing in one or both projects Gamma and Sigma. The net cash flows for both projects are shown below:

YEAR	EXPECTED NET CASH FLOW
	GAMMA	SIGMA
0	-$100	-$100
1	10	70
2	60	50
3	80	20

The cost of capital based on the assessments of the projects is 10% for both.

i) The net present value of project Sigma is

A.

$19.98

B.

$12.22

C.

$26.89

D.

$17.23

E.

$34.66

ii) The profitability index (PI) for project Gamma is

A. 0.9456

B. 1.0678

C. 1.1878

D. 1.2465

E. 1.3869

iii)The Internal rate of return (IRR) for project Gamma is

A.

18.1%

B.

20.3%

C.

15.34%%

D.

28.56%

E.

7.37%

iv) The profitability index (PI) for project Sigma is

A.

0.8567

B.

1.7362

C.

1.5674

D.

1.0456

E.

1.1998

v) The discounted payback period for project Gamma is

A. 1.8 years

B. 2.7 years

C. 2.9 years

D. 3.0 years

E. 0.9 years

vi) The net present value of project Gamma is

	A.	$5.54
	B.	$15.20
	C.	$18.79
	D.	$27.56
	E.	$32.50

vii) The modified Internal rate of return (MIRR) for project Sigma is

A. 13.8%

B. 16.9%

C. 21.9%

D. 23.2%

E. 25.1%

viii) The payback period for project Gamma is

A.	2.4 years
B.	2.6 years
C.	1.5 years
D.	1.8 years
E.	3.2 years

ix) The Internal rate of return (IRR) for project Sigma is

A.	18.3%
B.	23.6%
C.	28.4%
D.	32.9%
E.	27.6%

x) The modified Internal rate of return (MIRR) for project Gamma is
	A.	8.4%
	B.	10.5%
	C.	14.3%
	D.	16.5%
	E.	22.2%