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Please use the following information for the next three questions. Frieda Inc. is considering a capital expansion project. The cost of the project is $105,500.
Please use the following information for the next three questions. Frieda Inc. is considering a capital expansion project. The cost of the project is $105,500. This expansion project will last for five years. The net operating cash flows from the expansion project at the end of year 1, 2, 3, 4 and 5 are estimated to be $22,500, $25,800, $33,000, $45,936 and $58,500 respectively. Frieda's weighted average cost of capital (WACC) is 24%. Question 4 (10 points) What is the project's NPV (net present value)? -$15,183.60 -$13,882.84 $1,817.34 $1,445.94 Question 5 (10 points) What is the project's MIRR (modified internal rate of return)? Assume the reinvestment rate from the project cash inflows is the same as the firm's WACC. 18.99% 19.17% 20.55% 24.00% What is the project's IRR (internal rate of return)? 15.20% 18.51% 22.50% 11.25%
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