1. If net working capital is a cash outflow in period zero, and there is no change to it throughout the project life. How should we treat it in the terminal year?

A. We add it to the after tax salvage value, which yields the terminal cash flow.

B. We don't have to do anything with it since it takes care of itself.

C. We divide it by the number of periods, then add it to each period.

D. We subtract it from the after tax salvage value to find the terminal cash flow.

2. Project K costs $46,720.88, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.

3. Project K costs $65,000, its expected cash inflows are $10,000 per year for 8 years, and its WACC is 10%. What is the project's MIRR? Round your answer to two decimal places.