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  3. 12 and 13 please :) 12. a firm considers a projec

12 and 13 please :) 12. A firm considers a project with the following...

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12 and 13 please :)

12. A firm considers a project with the following cash flows: the initial cost at time 0 is $1,000 (negative), the following cash flows received are $1,000, $100, $50, $50 in Year 1 to Year 4, respectively. What's its MIRR if WACC-12 % A. 13.10% B. 12.68% C. 11.32 % D. 10.72 % E. 12.00% 13. Which of the following constitutes an example of a cost, which is incremental cash flow, and therefore relevant in an accept/reject decision for capital budgeting? A. A firm has a land that can be used for a new plant site or, alternatively, can be used to grow wheat B. A firm can produce a new cleaning product that will generate new sales, but some of the new sales will be from customers who switch from another product the firm currently produces C. A firm orders and receives a piece of new equipment, which is shipped across the country and requires $25,000 in installation and set-up costs. D. NONE of the above are examples of incremental cash flows E. ALL of the above are examples of incremental cash flows

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