Question

In: Finance

Based on the MIRR of the following project, using the Reinvestment approach and a discount rate...

Based on the MIRR of the following project, using the Reinvestment approach and a discount rate of 13.38 percent, should the project be accepted? Answer 1 if Yes and 0 if No.

Year Cash Flow
0 $-91126
1 $47683
2 $43512
3 $69601
4 $-44473

Solutions

Expert Solution


Related Solutions

What is the MIRR for this project using the reinvestment approach? The interest rate is 9 percent
Yellow Day has a project with the following cash flows: Year |Cash Flows 0 −$26,400 1 10,250 2 17,900 3 9,360 4 −3,300 What is the MIRR for this project using the reinvestment approach? The interest rate is 9 percent Multiple Choice 15.78% 14.73% 12.62% 11.93% 9.95%
Calculate the project's MIRR, given a discount rate of 9 percent. The MIRR of the project with a discount rate of 9% is...
Emily's Soccer Mania is considering building a new plant. This project would require an initial cash outlay of $8.5 million and would generate annual cash inflows of $3.5 million per year for years one through four. In year five the project will require an investment outlay of $5.5 million. During years 6 through 10 the project will provide cash inflows of $5.5 million per year.Question:Calculate the project's MIRR, given a discount rate of 9 percent. The MIRR of the project...
Which of the following statements is/are CORRECT? MIRR is the discount rate that equates the PV...
Which of the following statements is/are CORRECT? MIRR is the discount rate that equates the PV of outflows with the FV of the cash inflows. NPV is based on the assumption that a project’s cash flow are reinvested at IRR. NPV profile is downward sloping line and identifies the relationship between NPV and IRR. Scale difference and timing differences are two reasons lead to NPV profiles cross-over. (this is incorrect) Both a and d are correct statements. Which of the...
Find the profitability index of a project with the following cash flows using a discount rate...
Find the profitability index of a project with the following cash flows using a discount rate of 2%: Period 0: -1000 Period 1: 707 Period 2: 398 Period 3: 291 Enter your answer in a decimal and round to the hundredths place.
What is the MIRR of project with the following cash flows? The discounting rate is 14%....
What is the MIRR of project with the following cash flows? The discounting rate is 14%. Year Cash Flow 0 -1,200,000 1 400,000 2 500,000 3 500,000 4 500,000 5 500,000 6 500,000
What is the NPV of the following project if the discount rate is 10%? Round to...
What is the NPV of the following project if the discount rate is 10%? Round to the nearest cent. Investment today: $-150,000; Cash flow in year 1: $60,000; Cash flow in year 2: $75,000; Cash flow in year 3: $60,000
Find the Discounted Payback period for the following project. The discount rate is 10% Project X...
Find the Discounted Payback period for the following project. The discount rate is 10% Project X Initial Outlay $17,249 Year 1 $5,113 Year 2 $5,108 Year 3 $5,772 Year 4 $8,459 Round the answer to two decimal places.
Find the discounted payback period for the following project. The discount rate is 10% Project X...
Find the discounted payback period for the following project. The discount rate is 10% Project X Initial Outlay $8,845 Year 1 $3,480 Year 2 $3,765 Year 3 $5,094 Year 4 $6,366 Round the answer to two decimal places.
Identify a profitable project using initial investment up to $ 50,000. The discount rate must be...
Identify a profitable project using initial investment up to $ 50,000. The discount rate must be bonds. In an excel evaluate the project with VPN, IRR, recovery period, and rate of return. justify the numbers they occupied, the conclusions of the metrics studied in the excel and the reasons why they consider the project as a good option.
Calculate the MIRR of the cash flows of the project below. Assume both the finance rate...
Calculate the MIRR of the cash flows of the project below. Assume both the finance rate and the reinvestment rate are 5% Time Period                Cash Flow          0                             -100          1                                20          2                                80          3                                90
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT