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Question :
[91].Maxwell Feed & Seed considering a project that has the : 1416408

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^{[91]}.Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.

Year__ ____0____ ____1____ ____2____ ____3____ ____4____ ____5__

Cash flows-$9,500$2,000$2,025$2,050$2,075$2,100

a.2.08%

b.2.31%

c.2.57%

d.2.82%

e.3.10%

^{[92]}.Last month, Lloyd's Systems analyzed the project whose cash flows are shown below. However, before the decision to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected.

Old WACC: 10.00%New WACC: 11.25%

Year__ ____0____ ____1____ ____2____ ____3__

Cash flows-$1,000$410$410$410

a.-$18.89

b.-$19.88

c.-$20.93

d.-$22.03

e.-$23.13

^{[93]}.Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik decided to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's action did not affect the forecasted cash flows. By how much did the change in the WACC affect the project's forecasted NPV? Note that a project's projected NPV can be negative, in which case it should be rejected.

Old WACC: 8.00%New WACC: 11.25%

Year__ ____0____ ____1____ ____2____ ____3__

Cash flows-$1,000$410$410$410

a.-$59.03

b.-$56.08

c.-$53.27

d.-$50.61

e.-$48.08

^{[94]}.Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 10.00%

Year__ ____0____ ____1____ ____2____ ____3__

Cash flows-$1,000$450$450$450

a. 9.32%

b.10.35%

c.11.50%

d.12.78%

e.14.20%

^{[95]}.Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 11.00%

Year__ ____0____ ____1____ ____2____ ____3__

Cash flows-$800$350$350$350

a. 8.86%

b. 9.84%

c.10.94%

d.12.15%

e.13.50%

^{[96]}.Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC:10.00%

Year__ ____0____ ____1____ ____2____ ____3____ ____4__

Cash flows-$850$300$320$340$360

a.14.08%

b.15.65%

c.17.21%

d.18.94%

e.20.83%

^{[97]}.Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.

WACC: 12.25%

Year__ ____0____ ____1____ ____2____ ____3____ ____4__

Cash flows-$850$300$320$340$360

a.13.42%

b.14.91%

c.16.56%

d.18.22%

e.20.04%

^{[98]}.Stern Associates is considering a project that has the following cash flow data. What is the project's payback?

Year__ ____0____ ____1____ ____2____ ____3____ ____4____ ____5__

Cash flows-$1,100$300$310$320$330$340

a.2.31 years

b.2.56 years

c.2.85 years

d.3.16 years

e.3.52 years

^{[99]}.Fernando Designs is considering a project that has the following cash flow and WACC data. What is the project's __discounted__ payback?

WACC: 10.00%

Year__ ____0____ ____1____ ____2____ ____3__

Cash flows-$900$500$500$500

a.1.88 years

b.2.09 years

c.2.29 years

d.2.52 years

e.2.78 years

^{[100]}.Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback?

WACC: 10.00%

Year__ ____0____ ____1____ ____2____ ____3____ ____4__

Cash flows-$950$525$485$445$405

a.1.61 years

b.1.79 years

c.1.99 years

d.2.22 years

e.2.44 years

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