Test3 PracticeProblems

Test3 PracticeProblems - Practice Problems for Exam#3 Use...

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Practice Problems for Exam #3 Use the following data to answer questions 1 thru 5: Year: 0 1 2 3 4 Proj. X Cash Flows:      -6,000           1,400       1,800       1,800       2,200 Proj. Y Cash Flows:      -7,000           4,000        2,500          800       1,800 The discount rate (cost of capital) for both projects is 9%. 1. What is the NPV for Project Y? a.  \$607.54 b.  \$666.84 c.  \$752.42 d.  \$835.17 2. What is the IRR for Project Y? a.  9.05% b.  11.25% c.  14.33% d.  16.21% 3. What is the Payback for Project Y? a.  2.38 years b.  2.50 years c.  2.63 years d.  2.75  years 4. What is the IRR for Project X (choose the closest answer provided)? a.  6.70% b.  6.80% c.  7.20% d.  8.50% 5. What is the MIRR for Project Y (choose the closest answer provided)? a.  10.23%

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Test3 PracticeProblems - Practice Problems for Exam#3 Use...

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