What is the modified irr of project d if the cost of


Project A Project B Project C Project D Project E

Today (20,000) (30,000) (8,000) (3,000) (6,000)

Year 1 10,000 2,000 1,000 2,000 750

Year 2 5,000 4,000 2,000 2,000 1,500

Year 3 2,500 6,000 3,000 2,000 2,250

Year 4 2,000 8,000 4,000 2,000 3,000

Year 5 1,000 10,000 5,000 2,000 3,750

Year 6 500 12,000 (6,000)

What is the Modified IRR of Project D if the cost of capital is 9%?

a) 8.18% b) 12.7% c) 24.2% d) 48.3%

What is the Net Present Value of project E if the cost of capital is 12%?

a) $0 b) $500 c) $1,000 d) $1,500

What is the IRR of project A if the cost of capital is 6%?

a) 0% b) 2.4% c) 8.25% d) 19.53%

What is Project A’s Profitability Index if the cost of capital is 6%?

a) .933 b) 1.02 c) 1.067 d) 1.091

What is Project B’s Payback Period?

a) 3.5 years b) 4 years c) 4.5 years d) 5 years

What is the Crossover Rate between Project B and C?

a) 4.5% b) 8.25% c) 12.5% d) 18.8%

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