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QUESTION 6: (10 marks) A) Cornell Enterprises is considering a project that has the following...

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QUESTION 6: (10 marks) A) Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected? (3 marks) WACC: 10.00% Year 0 1 2 3 Cash $825 $450 $460 $470 flows B) Datta Computer Systems 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 (and even negative), in which case it will be rejected. (3 marks) Year 0 1 2 3 Cash -$975 $450 $470 $490 flows C) Mansi Inc. is considering a project that has the following cash flow data. What is the project's payback? Is the project viable? Explain. (4 marks) Year 0 1 2 3 Cash $750 $300 $325 $350 flows Page 4 / 7 + [Total: 10 marks]

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