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Fernando Designs is considering a project 



1.	Warr Company 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 or negative, in both cases it will be rejected.
Year		0	1	2	3	4	
Cash flows	-$1,050	$400	$400	$400	$400
a.	14.05%
b.	15.61%
c.	17.34%
d.	19.27%
e.	21.20%

2.	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%


3.	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

4.	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




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