Objective type questions on payback period, NPV and IRR

Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent.

1. What is the payback period for this project?

a. 1.7 years

b. 2.2 years

c. 1.2 years

d. 2.7 years

2.  What is the net present value of this project? (Round to the nearest million dollars.)

a. $10 million

b. $12 million

c. $14 million

d. $16 million

3.  What is the internal rate of return that Turnbull can earn on this project? (Round to the nearest percent.)

a. 41%

b. 42%

c. 43%

d. 44%

4.  What is the MIRR on this project? (Round to the nearest percent.)

a. 36%

b. 37%

c. 38%

d. 39%