1. Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 9.00% Year 0 1 2 3 Cash flows -$1,000 $450 $450 $450 a. 14.53% b. 13.28% c. 17.29% d. 13.84% e. 13.70%
2. Calculate the Macaulay duration and the modi ed duration of a 30-year zero-coupon bond with a face value of $1,000. Assume that the annual yield-to-maturity is 8%