Final SUMMER-S-MFIN-511-1-01: Final MER-S-MFIN-511-1-01 Woatich Windmill Company is considering a project that calls for an initial cash outlay of $50,000. The expected net cash inflows from the project are $7,791 for each of 10 years. What is the IRR of the project? 11 Select one: a. 8.9% b. 6% c. 7% d. 20% bus page Next page AMER-S-MFIN-511-1-01 In a world of no corporate taxes if the use of leverage does not change the value of the levered firm relative to the unlevered firm this is known as: tof 1 Select one: a. MM Proposition that leverage is invariant to market value. b. MM Proposition II that the cost of equity is always constant. C. MM Proposition III that the cost of stock is less than the cost of debt. d. MM Proposition I that the market value of the firm is invariant to the capital structure. Next page