Question
In: Finance
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?
Solutions
Expert Solution
| A | B | C | |
| 2 | WACC= | 13% | |
| 3 | Year | Project X's Cash F;ow | |
| 4 | 0 | $ (11,500.00) | |
| 5 | 1 | $ 5,580.00 | |
| 6 | 2 | $ 4,430.00 | |
| 7 | 3 | $ 1,770.00 | |
| 8 | 4 | $ 2,250.00 | |
| MIRR= | MIRR(C4:C8,C2,C2) | ||
| MIRR= | 12% | ||
| In this case MIRR is less than Cost of capital Project should not be accepted. |
jeff jeffy answered 2 years agoRelated Solutions
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
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Should the project be accepted or rejected?
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
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period is four years. (Round your answer to 2 decimal
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Project A
Time:
0
1
2
3
4
5
Cash flow:
–$1,600
$590
$660
$640
$420
$220
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Compute the discounted payback statistic for Project D if the appropriate cost of capital is 13...
Compute the discounted payback statistic for Project D if the
appropriate cost of capital is 13 percent and the maximum allowable
discounted payback is four years. (Do not round intermediate
calculations and round your final answer to 2 decimal places. If
the project does not pay back, then enter a "0" (zero).
PROJECT D:
TIME
0
1
2
3
4
5
Cash Flow $
-11,800
$3,430
$4,340
$1,680
$0 $1,160
Discounted Payback Period =
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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:
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$4,420
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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
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$320
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Compute the PI statistic for Project Z if the appropriate cost
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Project Z
Time:
0
1
2
3
4
5
Cash
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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 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
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$300
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show how to do this in excel and the excel formulas
You have to show what the excel formulas are pls
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cost of capital is 12 percent and the maximum allowable payback
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Project B
Time:
0
1
2
3
4
5
Cash flow:
–$11,600
$3,410
$4,300
$1,640
$0
$1,120
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:
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$3,690
$4,520
$1,860
$640
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