Question
In: Finance
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow...
| Slow Ride Corp. is evaluating a project with the following cash flows: |
| Year | Cash Flow |
| 0 | –$12,600 |
| 1 | 6,000 |
| 2 | 6,300 |
| 3 | 6,100 |
| 4 | 5,000 |
| 5 | –4,500 |
|
The company uses a 11 percent discount rate and an 9 percent reinvestment rate on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. |
| Required: | |
| (a) | MIRR using the discounting approach.(Do not round your intermediate calculations.) |
| (Click to select)19.15%19.27%20.56%20.16%21.17% | |
| (b) | MIRR using the reinvestment approach.(Do not round your intermediate calculations.) |
| (Click to select)13.8%14.53%15.85%14.82%15.26% |
| (c) | MIRR using the combination approach.(Do not round your intermediate calculations.) |
Solutions
jeff jeffy answered 9 months agoRelated Solutions
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow...
Slow Ride Corp. is evaluating a project with the following cash
flows:
Year
Cash Flow
0
–$12,800
1
6,200
2
6,800
3
6,300
4
5,200
5
–4,400
The company uses a 11 percent discount rate and an 10 percent
reinvestment rate on all of its projects. Calculate the MIRR of the
project using all three methods using these interest rates.
Required:
(a)
MIRR using the discounting approach.(Do not round your
intermediate...
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow...
Slow Ride Corp. is evaluating a project with the following cash
flows:
Year
Cash Flow
0
–$
29,000
1
11,200
2
13,900
3
15,800
4
12,900
5
–
9,400
The company uses a 10 percent interest rate on all of its
projects.
Calculate the MIRR of the project using the discounting approach
method. (Do not round intermediate calculations and round
your final answer to 2 decimal places. (e.g., 32.16))
MIRR
%
Calculate the MIRR of...
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
Slow Ride Corp. is evaluating a project with the following cash
flows: Year Cash Flow 0 –$28,400 1 10,600 2 13,300 3 15,200 4
12,300 5 –8,800 The company uses a 8 percent interest rate on all
of its projects. Calculate the MIRR of the project using all three
methods. Required: (a) MIRR using the discounting approach.(Do not
round your intermediate calculations.) (b) MIRR using the
reinvestment approach. (Do not round your intermediate
calculations.) (c) MIRR using the combination approach....
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
Slow Ride Corp. is evaluating a project with the following cash
flows: Year Cash Flow 0 –$13,400 1 6,100 2 6,800 3 6,500 4 5,400 5
–5,900
The company uses a 11 percent discount rate and an 7 percent
reinvestment rate on all of its projects. Calculate the MIRR of the
project using all three methods using these interest rates.
Required:
(a) MIRR using the discounting approach.(Do not round your
intermediate calculations.)
(b) MIRR using the reinvestment approach.(Do not round...
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
Slow Ride Corp. is evaluating a project with the following cash
flows:
Year Cash Flow
0 –$ 29,000
1 11,200
2 13,900
3 15,800
4 12,900
5 – 9,400
The company uses a 10 percent interest rate on all of its
projects.
Calculate the MIRR of the project using the discounting approach
method. (Do not round intermediate calculations and round your
final answer to 2 decimal places. (e.g., 32.16))
Calculate the MIRR of the project using the discounting approach
method....
Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
Slow Ride Corp. is evaluating a project with the following cash
flows:
Year
Cash Flow
0
–$13,200
1
5,900
2
6,600
3
6,300
4
5,200
5
–5,700
The company uses a 11 percent discount rate and an 8 percent
reinvestment rate on all of its projects. Calculate the MIRR of the
project using all three methods using these interest rates.
Required:
(a)
MIRR using the discounting approach.
(Click to select)17.31%16.12%15.46%17.82%16.97%
(b)
MIRR using...
RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
RAK Corp. is evaluating a
project with the following cash flows:
Year
Cash Flow
0
–$
28,600
1
10,800
2
13,500
3
15,400
4
12,500
5
–
9,000
The company uses a discount rate
of 13 percent and a reinvestment rate of 6 percent on all of its
projects.
Calculate the MIRR of the project using the discounting
approach. (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)...
Mittuch Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Mittuch Corp. is evaluating a project with the following cash
flows: Year Cash Flow 0 –$ 15,400 1 6,500 2 7,700 3 7,300 4 6,100 5
–3,500 The company uses an interest rate of 8 percent on all of its
projects. Calculate the MIRR of the project using all three
methods. (Do not round intermediate calculations and enter your
answers as a percent rounded to 2 decimal places, e.g., 32.16.)
MIRR Discounting approach % Reinvestment approach % Combination
approach %
RAK Corp. is evaluating a project with the following cash flows: Year Cash Flow 0...
RAK Corp. is evaluating a
project with the following cash flows:
Year
Cash Flow
0
–$
29,500
1
11,700
2
14,400
3
16,300
4
13,400
5
–
9,900
The company uses a discount rate
of 13 percent and a reinvestment rate of 6 percent on all of its
projects.
1. Calculate the MIRR of the project using the discounting
approach. (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places, e.g.,...
Chamberlain Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$...
Chamberlain Corp. is evaluating a project with the following
cash flows: Year Cash Flow 0 –$ 23,000 1 8,400 2 9,200 3 8,900 4
7,500 5 – 5,000 Required: The company uses an interest rate of 6
percent on all of its projects. Calculate the MIRR of the project
using all three methods. (Do not round intermediate calculations.
Round your answers to 2 decimal places (e.g., 32.16).)
MIRR Discounting approach %
Reinvestment approach %
Combination approach %
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