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1.Project K costs $60,000, its expected cash inflows are $13,000 per year for 7

ID: 1237261 • Letter: 1

Question

1.Project K costs $60,000, its expected cash inflows are $13,000 per year for 7 years, and its WACC is 9%. What is the project's NPV? Round your answer to the nearest cent.

2.Project K costs $51,955.53, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.

3.Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 11%. What is the project's MIRR? Round your answer to two decimal places.

4.Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 11%. What is the project's MIRR? Round your answer to two decimal places.

5.Your division is considering two projects with the following cash flows (in millions):
0 1 2 3
Project A -$16 $7 $9 $10
Project B -$26 $14 $20 $11


What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places.
Project A $ million
Project B $ million
What are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places.
Project A $ million
Project B $ million
What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places.
Project A %
Project B %
What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places.
Project A %
Project B %

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