1.  Project L requires an initial outlay at t = 0 of $45,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 13%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $   2. Project L requires an initial outlay at t = 0 of $59,357, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 13%. What is the project's IRR? Round your answer to two decimal places.   %

Tropical Sweets is considering a project that will cost $70 million and will generate expected cash flows of $30 million per year for 3 years. The cost of capital for this type of project is 10%, and the risk-free rate is 6%. After discussions with the marketing department, you learn that there is a 30% chance of high demand with associated future cash flows of $45 million per year. There is also a 40% chance of average demand with cash flows of $30 million per year as well as a 30% chance of low demand with cash flows of only $15 million per year. What is the expected NPV?

Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?

The Ulmer Uranium Company is deciding whether or not to open a strip mine whose net cost is $4.4 million. Net cash inflows are expected to be $27.7 million, all coming at the end of Year 1. The land must be returned to its natural state at a cost of $25 million, payable at the end of Year 2. Plot the project’s NPV profile. Should the project be accepted if r = 8%? If r = 14%? Explain your reasoning. Can you think of some other capital budgeting situations in which negative cash flows during or at the end of the project’s life might lead to multiple IRRs? What is the project’s MIRR at r = 8%? At r = 14%? Does the MIRR method lead to the same accept-reject decision as the NPV method?

Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is the NPV using 8% as the discount rate?

A.   Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 12%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.   $ _______   B.   Project L requires an initial outlay at t = 0 of $77,534, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places.   _______ %   C.   Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.   _________%   D.   Project L requires an initial outlay at t = 0 of $52,000, its expected cash inflows are $14,000 per year for 8 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places.   _______ years   E.…

3. project L requires an initial outlay at t = 0 of $35,000, its expected cash inflows are $15,000 per year for 9 years, and its WACC is 10%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.   % 4. Project L requires an initial outlay at t = 0 of $61,000, its expected cash inflows are $11,000 per year for 7 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places.   years

Project L requires an initial outlay at t = 0 of $40,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 11%. What is the project's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $  ______

Project L requires an initial outlay at t = 0 of $50,000, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 10%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.   Project L requires an initial outlay at t = 0 of $66,788, its expected cash inflows are $11,000 per year for 10 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places.

3. Project L requires an initial outlay at t = 0 of $75,000, its expected cash inflows are $8,000 per year for 9 years, and its WACC is 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.