1. Tracy is single and has an adjusted gross income of $45,800 in 2015. She also has the following items:

Unreimbursed medical expenses - 4,163

State income tax - 2,123

Interest expense (1st mortgage) - 3,348

Interese expense (2nd mortgage) - 1,320

Real estate tax - 954

Interest expense - car loan - 505

Interest expense - credit card - 1,130

Gifts to charity - 402

How much can Tracy claim as itemized deductions?

2.  You have two capital projects projected below. Projects X and Y have the following costs and projected cash flows.

The cost of capital for both projects is 12%.

Project X Project Y

0 ($10,000) ($10,000)

1 $6,500 $3,500

2 $3,000 $3,500

3 $3,000 $3,500

4 $1,000 $3,500

Calculate the MIRR of each project.