Question

The Harris Company is considering a project, which costs $100,000 and will provide cash flows of...

The Harris Company is considering a project, which costs $100,000 and will provide cash flows of $50,000 per year at the end of each of the next 3 years.   Harris’s cost of capital is 10 percent. What is Harris’ modified internal rate of return (MIRR)?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Harris Company is considering a project, which costs $100,000 and will provide cash flows of...
The Harris Company is considering a project, which costs $100,000 and will provide cash flows of $50,000 per year at the end of each of the next 3 years.   Harris’s cost of capital is 10 percent. What is Harris’ modified internal rate of return (MIRR)?
1. Project A, which costs of $1,000 to purchase, will generate net cash inflows equal to...
1. Project A, which costs of $1,000 to purchase, will generate net cash inflows equal to $500 at the end of each of the next three years. The project's required rate of return is 10 percent. What are the project's internal rate of return (IRR) and modified internal rate of return (MIRR)? 23.4%; 38.2% 14.5%; 12.6% 16.7%; 18.3% 23.4%; 16.7% 23.4%; 18.3% 2. The internal rate of return (IRR) of a project that generates its largest cash flows in the...
You are considering a project with an initial cash outlay of $100,000 and expected free cash...
You are considering a project with an initial cash outlay of $100,000 and expected free cash flows of $23,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. a. What is the project’s payback period? b. What is the project’s discounted payback period? c. What is the project’s NPV ? d. What is the project’s PI ? e. What is the project’s IRR ? f. What is the project’s...
A company is considering a project with the following cash flows: Time Cash Flow 0 -$100...
A company is considering a project with the following cash flows: Time Cash Flow 0 -$100 <<<<<<< negative 1 $100 2 -$100 <<<<<<< negative 3 $120 At a cost of capital of 10%: a. What is the NPV? b. What is the Modified Internal rate of Return? Should the company accept this project?
Project P costs $15,000 and is expected to produce benefits (cash flows) of $4,500 per year...
Project P costs $15,000 and is expected to produce benefits (cash flows) of $4,500 per year for five years. Project Q costs $37,500 and is expected to produce cash flows of $11,100 per year for five years. Calculate each project’s (a) net present value (NPV), (b) internal rate of return (IRR), and (c) mod- ified internal rate of return (MIRR). The firm’s required rate of return is 14 percent.  Compute the (a) NPV, (b) IRR, (c) MIRR, and (d) discounted payback...
A project costs $37,241 to initiate. It is expected to provide cash flows of $21,200 in...
A project costs $37,241 to initiate. It is expected to provide cash flows of $21,200 in Year 1 and $47,600 in Year 2. In Year 3, it will cost the firm $4,100 to end the project. What is the modified IRR at a discount rate of 14.5 percent?
Belanger Construction is considering the following project. The project has an up-front cost and will also...
Belanger Construction is considering the following project. The project has an up-front cost and will also generate the following subsequent cash flows:             t = 1      $400             t = 2      500             t = 3      200 The project’s payback is 1.5 years, and it has a cost of capital of 10 percent. What is the project’s modified internal rate of return (MIRR)?
A firm is planning a new project that is projected to yield cash flows of -...
A firm is planning a new project that is projected to yield cash flows of - $595,000 in Year 1, $586,000 per year in Years 2 through 5, and $578,000 in Years 6 through 11. This investment will cost the company $2,580,000 today (initial outlay). We assume that the firm's cost of capital is 11%. 1. Compute the projects payback period, net present value (NPV), profitability index (PI), internal rate of return (IRR), and modified internal rate of return (MIRR)....
2. A company is considering a project that has the following cash flows: C0 = -3,000,...
2. A company is considering a project that has the following cash flows: C0 = -3,000, C1 = +900, C2 = +500, C3 = +1,100, and C4 = +1,900, with a risk-adjusted discount rate of 8%. A) Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Profitability Index (PI) of this project. B) If you were the manager of the firm, will you accept or reject the project based on the...
If an investment project is described by the sequence of cash flows: Year Cash flow 0...
If an investment project is described by the sequence of cash flows: Year Cash flow 0 -300 1 -900 2 1100 3 500                 Calculate the MIRR, we will assume a finance rate of 8% and a reinvestment rate of 10%   [5] Find the IRR (using 7%, 10%, 11%) of an investment having initial cash outflow of $3,000. The cash inflows during the first, second, third and fourth years are expected to be $700, $800, $900 and $1,200 respectively            [5]...