1. Explain the concepts underlying the risk analysis and project evaluation.
2. Discounted Payback
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period? Round your answer to two decimal places.
years
3. MIRR
A project has an initial cost of $69,900, expected net cash inflows of $13,000 per year for 7 years, and a cost of capital of 9%. What is the project's MIRR? Round your answer to two decimal places.
%