If an investment project is described by the sequence of cash flows:

Year	Cash flow
0	-300
1	-900
2	1100
3	500

Calculate the MIRR, we will assume a finance rate of 8% and a reinvestment rate of 10% [5]

Find the IRR (using 7%, 10%, 11%) of an investment having initial cash outflow of $3,000. The cash inflows during the first, second, third and fourth years are expected to be $700, $800, $900 and $1,200 respectively [5]

(c ) Company X is currently making its capital budgeting decisions for the upcoming year. Among the projects they are considering are two equipment: Equipment A and equipment AA. Equipment A costs $50,000 but will produce expected after-tax cash inflows of $30,000 at the end of each of the next 2 years. Equipment AA also costs $50,000 but will produce expected after tax cash inflows of $16,500 at the end of each of the next 4 years. Both projects have a 12% cost of capital.Assume that these are Mutual excusive projects. Using NPV, Which project or projects should the company accept [5]

(d) year CF_X

It is now determined that the cost of capital for both projects is 14%. Using IRR, should the Project be selected? [5]