The taxi co is evaluating a project with the following cash


1) The Taxi Co. is evaluating a project with the following cash flows:

Year : Cash Flow

0:      -20,400

1:       6100

2:       5200

3:       7950

4:      5400

5:      -3700

Should this project be accepted based on the PI if the discount rate is 8 percent?

2) A firm evaluates all of its projects by applying the IRR rule. If the required return is 18 percent, should the firm accept the following project?

Year : Cash Flow

0 :      -$105,600

1 :       $29,500

2 :       $34,200

3 :       $6,750

4 :      $15,320

5 :      $25,670

3) Consider the following cash flows. If the discount rate is 12 percent, should we accept this project based on the MIRR rule?

Year :  Cash Flow

0:       -13,024

1:       17,172

2:       -36,420

3:       34,200

4:     -15,000

5:      8,500

6:     11,300

7:    -6820

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Financial Management: The taxi co is evaluating a project with the following cash
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