1. Your firm is considering a project that will cost $3 million in initial investments. The project will earn cash flows of $750,000 for 6 years then terminate with no salvage value. If the WACC is 8%, what is the Net Present Value of the investment?

   $467,160
   		$487,993
   		$472,627
   		$503,679

   1. A project calls for $5.5 million in initial investments. The project will return the following cash flows. What is the modified IRR if the WACC of 7% is applied as the reinvestment rate? Year: CF
      • 1 400k
      • 2 700k
      • 3 1.1 million
      • 4 1.7 million
      • 5 1.8 million
      • 6 1.5 million
      • 7 900k
      • 8 300k

		9.49%
		9.98%
		8.87%
		8.61%