1. Precious Metal Mining has $18 million in sales, its ROE is 13%, and its total assets turnover is 4x. Common equity on the firm’s balance sheet is 75% of its total assets. What is its net income? Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent. Do not round intermediate steps.
2. Here are the cash flows for a project under consideration: C0 C1 C2 −$6,870 +$4,680 +$18,120 a. Calculate the project’s net present value for discount rates of 0, 50%, and 100%. (Round your answers to the nearest whole dollar.) b. What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)