QUESTION 10 1 A firm with a 10.5 percent cost of capital in considering a project for this year's capital budget. The project's expected after-tax cash flows are as follows: Year: Cash flow: 0 -$8,000 1 $3,700 2 $3,500 3 $3,400 4 $3,400 Calculate the project's payback period. O a. 2.24 years O b.3.00 years OC 2.76 years O d.2.00 years Oe. 2.50 years QUESTION 11 Bonus: Project X has an initial cost of $51.604, and its expected net cash inflows are $10.250 per year for 8 years. The firm has WACC of 7 percent, and Project X's risk would be similar to that of the firm's existing assets. Calculate Project X's modified internal rate of return (MIRR). a. 58.90% O b.9.319 OC 11.629 d. S.96% O e. 7.0096 QUESTION 12 A firm with a 9 percent cost of capital is considering a project for this year's capital budget. The project's expected after-tax cash flows are as follows: Year: Cash flow: 0 -$12,000 1 $5,200 2 $5,800 3 $4,100 4 $5,900 Calculate the project's discounted payback period. O a.2.26 years Ob.2.00 years O. 2.50 years O d. 3.00 years Oe.2.74 years