1. You are considering a project that costs $5,500 today and has annual after-tax cash flows of $700 per year forever: The cost of capital for this project is 10 percent, and your firm only accepts projects with a payback period of less than 3.5 years. What is the Payback, NPV and IRR of this project
2. Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 Cash flows -$1,025 $425 $425 $425.