Anderson corporation is considering an expansion project that will begin next year ( time 0). Anderson's cost of capital is 12%. Reinvestment rate is 15%. The initial cost of the project will be $250,000 and it is expected to generate the following cash flows over its five-year life:

year $

1 $40,000

2 $60,000

3 $90,000

4 $70,000

5 $100,000 .

1. What is the internal rate of return (IRR) for the expansion project?

a. 4.13%

b. 6.5%

c. 10.36%

d. 11.83%

e. 14.67%

2. What is the Modified Internal Rate of Return ( MIRR ) for the expansion project?

a. 10.63%

b. 12.96%

c. 13.01%

d. 13.73%

e. 14.05%

3. What is the Modified Net Present Value ( MNPV ) for the expansion project?

a. $268,811

b. $11,435;

c. $25,726

d. $18,811

e. $19,025