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The Jake in the Box is considering two projects, both of which have an initial cost of $35,000 and total cash inflows of $50,000. Specifically, the cash Inflows of project A are $5,000, $10,000, $15,000, and $20,000 over the next four years, respectively. The cash inflows for project Bare $10,000, $5,000, $5,000, and $30,000 over the next four years, respectively. Which one of the following statements is correct if The Jake requires a 13 percent rate of return and has a required discounted payback period of 3 years? a. Both projects should be accepted. Ob. Both projects should be rejected. Oc. Project A should be accepted and project B should be rejected, O d. Project A should be rejected and project B should be accepted. Oe. You should be indifferent to accepting either or both projects, You decide to buy an NFL team so you can move the team to Elon, NC. You buy the team for $300 million today and pay another $100 million today to build a new stadium. You then lose $35 million per year for the next 15 years. At the end of the 15 years, you then sell the team for $2.25 billion so the new owner (Mr. Warren Buffett) can move the team to Omaha, Nebraska, Your discount rate is 7.5%. What is the MIRR of this project if you reinvest at the discount rate and should you buy the team? O a. Yes, you should buy the team because MIRR IS 7.52% O b. Yes, you should buy the team because MIRR IS 8.00% OC. No, you should not buy the team because MIRR IS 7.25% O d. No, you should not buy the team because MIRR IS 8.00% Oe. No, you should not buy the team because MIRR IS 4.85%

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