Question

Problem 10-3
MIRR

A project has an initial cost of $42,875, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 12%. What is the project's MIRR? Round your answer to two decimal places.

Problem 10-7
NPV

Your division is considering two investment projects, each of which requires an up-front expenditure of $17 million. You estimate that the investments will produce the following net cash flows:

Year	Project A	Project B
1	$  5,000,000	$20,000,000
2	10,000,000	10,000,000
3	20,000,000	7,000,000

1. What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar.
   Project A $  
   Project B $  
   
   What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar.
   Project A $  
   Project B $  
   
   What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar.
   Project A $  
   Project B $  
2. What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places.
   Project A     %
   Project B     %

Answer 1

10-3)