What is the mirr on the project

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Question 1: Given the following cash flows for a capital project, calculate the NPV and IRR. The required rate of return is 8 percent.

Year                         0            1              2                      3             4                     5

Cash Flows        $-49952          $13550         $11550    $23700         $8600              $5150

a. NPV=1137. IRR=13.0%

b. NPV=784. IRR=13.0%

c. NPV=784. IRR=9.0%

d. NPV=1137. IRR=9.0%

Question 2: West Street Automotive is considering adding state safety inspections to its service offerings. The equipment necessary to perform these inspections will cost $602,000 and will generate cash flows of $211,000 over each of the next five years.

If the cost of capital is 17 percent, what is the MIRR on this project? (Round final answer to 1 decimal place, e.g. 527.5.)

Reference no: EM132554637

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