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.
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%
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 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...
1.Which of the following is not an advantage of MIRR
compared to IRR?
A. Assumes reinvestment of cash flows at
WACC
B. Assumes reinvestment of cash flows at
IRR
C. Avoids multiple IRR issue
D. None of the above
2.What’s the crossover rate of the following two cash
flow series? Year 0 1 2 3 Project X -$1,150 $1000 $300 $400 Project
Y -$1,150 $500 $300 $1000
A. 12%
B. 11%
C. 10.3%
D. 9.5%
E. None of the above...
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%.
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 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
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
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.