project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%.What is the project's NPV? (Hint: Begin by constructing a time line.)

. What is the project's IRR?

What is the project's MIRR?

. What is the project's PI?

What is the project's payback period?

. What is the project's discounted payback period?

Your division is considering two investment projects, each of which requires an up-front

expenditure of $15 million. You estimate that the investments will produce the following

net cash flows:

Year Project A Project B

1 $ 5,000,000 $20,000,000

2 10,000,000 10,000,000

3 20,000,000 6,000,000

a. What are the two projects' net present values, assuming the cost of capital is 5%?

10%? 15%?

b. What are the two projects' IRRs at these same costs of capital?