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Project A has cash flows of -$50,000, $29,400, $27,200, and $24,500 for years 0 to 3, respectively. Project B has an initial cost of $50,000 and an annual cash inflow of $26,500 for three years. These are mutually exclusive projects. What is the crossover rate? Multiple Choice 15.99 percent 16.00 percent 14.72 percent 28.15 percent 11.98 percent Catepillar Farms Inc. imposes a payback cutoff of three years for its international investment projects. Year o Cash Flow Cash Flow (A) (6) 67,000 77,000 $ 26,500 18,500 35,000 21,500 24,500 33,000 11,500 237,000 1 2 3 4 What is the payback period for both projects? (Round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A years Project B years Which project should the company accept? O Project B O Project A Target Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $28,200 1 2 UWN 10,400 13,100 15,000 12,100 - 8,600 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using the discounting approach. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) MIRR Calculate the MIRR of the project using the reinvestment approach. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) MIRR 1% Calculate the MIRR the project using the combination approach. (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR A project at Toyota Inc. has cash flows of -$152,000, $60,800, $62,300 and $75,000 for years 0 to 3, respectively. The required rate of return is 13 percent. What is the profitability index? Should you accept or reject the project based on this index value? Multiple Choice 1.02; accept 93; accept 1.07 reject 107; accept O 93; reject What is the internal rate of return on an investment at Target Corp. with the following cash flows? Year 0 1 Cash Flow -$109,000 43,400 36,100 48,600 2 3 Multiple Choico 9.45 percent 13.00 percent 39.17 percent 28.36 percent Multiple Choice 9.45 percent 13.06 percent 39.17 percent 28,36 percent 8.36 percent What is the net present value of a project at Target Corp. with the following cash flows and a required return of 14 percent? Year 0 1 Cash Flow -$36,600 17,100 24,530 4.150 2 3 Multiple Choice $400.33 $76.17 -$2,241,82 Multiple Choice O $468.33 $76.17 $2.241.82 $76.17 $ 468.33

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