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Fernando Designs is considering a project that has the following cash 


1.	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%

2.	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

3.	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


4.	Which of the following statements is CORRECT?
a.	For a project to have more than one IRR, then both IRRs must be greater than the WACC.
b.	If two projects are mutually exclusive, then they are likely to have multiple IRRs. 
c.	If a project is independent, then it cannot have multiple IRRs.
d.	Multiple IRRs can only occur if the signs of the cash flows change more than once.
e.	If a project has two IRRs, then the smaller one is the one that is most relevant, and it should be accepted and relied upon.




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