QUESTION 14 Based on the information in Part Il of the Intel project, what is the MIRR of the project? Use the WACC as both the reinvestment rate and the finance rate. A. 7.08% B.3.86% C.2.02% D. 1.37% QUESTION 15 Based on the MIRR, Intel SHOULD go forward with this project. True False Part II: Capital Budgeting Use this information to answer questions 9-18 Intel is contemplating a new project where they will bring their computer chip manufacturing business back to the United States. They are estimating that they will invest $415,000 initially then will have positive cash flows over the next four years of: Year 1: $45,000 Year 2: $125,000 Year 3: $160,000 Year 4: $175.000 Regardless of your answer in the previous question use a WACC of 7.2%. (This is NOT the answer you should have gotten in part 1.) Part II: Cash Flow Estimation Use this information to answer questions 18 - 25 BearKat Enterprises is considering a project where they will make high end designer face masks. They can buy the equipment they need to make the face masks for $250,000 plus another $20,000 for training and installation. They will have to increase inventory by $17,000 and accounts payable will increase $3,000. They think they can sell 23,000 masks a year at a price of $6.50 each for 4 years. The estimate variable costs at 52% of revenue. They follow a four years MACRS schedule for depreciation with the following depreciation rates: Year 1: 33% Year 2: 45% Year 3: 15%