Question

In: Finance

Compute the MIRR statistic for Project J if the appropriate cost of capital is 10 percent....

Compute the MIRR statistic for Project J if the appropriate cost of capital is 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project J
Time: 0 1 2 3 4 5
Cash flow: −$1,000 $350 $1,480 −$520 $300 −$100

MIRR ______ %

Should the project be accepted or rejected?

Solutions

Expert Solution

let me know if you need any clarification..

Computation of MIRR
Year Cash flow
0        (1,000)
1             350
2          1,480
3           (520)
4             300
5           (100)
we have to first compute the future value of the cash flow from year 1 to 5
Year Cash flow Future value
1             350      512.44 =350*(1+10%)^4
2          1,480 1,969.88 =1480*(1+10%)^3
3           (520)    (629.20) =-520*(1+10%)^2
4             300 3,300.00 =3000*(1+10%)
5           (100)    (100.00) -100
future value = 5,053.12
now we have to use financial calculator to compute the MIRR
Put in calcluator
PV -1000
PMT 0
FV 5,053.12
N 5
Compute I 38.26%
therefore MIRR = 38.26%
Project should be ACCEPTED.

jeff jeffy answered 7 months ago
Next > < Previous

Related Solutions

Compute the MIRR statistic for Project I if the appropriate cost of capital is 13 percent....
Compute the MIRR statistic for Project I if the appropriate cost of capital is 13 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Project I Time: 0 1 2 3 4 Cash flow –$11,500 $5,580 $4,430 $1,770 $2,250 MIRR % Should the project be accepted or rejected?
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: –$1,000 $350 $1,480 –$520 $300 –$100 show how to do this in excel and the excel formulas You have to show what the excel formulas are pls
Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent...
Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.) Project A Time: 0 1 2 3 4 5 Cash flow: –$1,600 $590 $660 $640 $420 $220 Should the project be accepted or rejected?
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent....
Compute the NPV statistic for Project Y if the appropriate cost of capital is 12 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 0 1 2 3 4 Cash flow: –$9,200 $3,590 $4,420 $1,760 $540 NPV: Should the project be accepted or rejected? accepted rejected
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent....
Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)       Project U   Time: 0 1 2 3 4 5   Cash flow –$1,050 $370 $1,530 –$530 $320 –$110
Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent....
Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)       Project Z   Time: 0 1 2 3 4 5   Cash flow –$3,300 $730 $860 $1,030 $680 $480
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent....
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 0 1 2 3 4 Cash flow: –$8,100 $3,370 $4,200 $1,540 $320
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6...
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 6 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Project C Time: 0 1 2 3 4 5 Cash flow –$2,900 $1,240 $1,050 $1,090 $680 $480 Discounted payback period years Should the project be accepted or rejected? Rejected Accepted
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback period is three years. Time: 0 1 2 3 4 5 Cash flow: –$1,000 $480 $480 $520 $300 $100 Calculate discounted payback period in years
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8...
Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable discounted payback period is three years. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project C Time: 0 1 2 3 4 5 Cash flow: –$2,200 $960 $840 $880 $540 $340 Should the project be accepted or rejected? accepted rejected
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT