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7. Refer to Exhibit 2 below. What is the project’s payback period? 8. Refer to Exhibit...

7. Refer to Exhibit 2 below. What is the project’s payback period?

8. Refer to Exhibit 2 below. If the firm’s WACC is 10%, what is the project’s NPV?

9. Refer to Exhibit 2 below. What is the project’s IRR (to one decimal place, e.g., 5.1%)?

10. Refer to Exhibit 2 below. If the firm’s WACC is 10%, what is the project’s MIRR (to one decimal place, e.g., 5.1%)?

Exhibit 2

A firm is considering a project with the following cash flows.

Year

0

1

2

3

Cash Flows   

-$800

$200

$500

$1,000

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