PART A:

O'Donnell Inc. has a required rate of return of 11.5 percent. The company has a project with the following cash flows:

Year	Cash flow
0	$200
1	235
2	65
3	300

What is the project's modified internal rate of return (MIRR)? choose the correct choice.

	a.	39.87%
	b.	36.27%
	c.	40.15%
	d.	28.15%
	e.	32.90%

PART B:

Two projects being considered are mutually exclusive and have the following projected cash flows:

Year	Project A	Project B
0	$50,000	$ 50,000
1	15,990	0
2	15,990	0
3	15,990	0
4	15,990	0
5	15,990	100,560

At what rate (approximately) do the NPV profiles of Projects A and B cross? Choose the correct choice.

	a.	6.5%
	b.	11.5%
	c.	16.5%
	d.	20.0%
	e.	The NPV profiles of these two projects do not cross.