Question

A company is evaluating a project with the following cash flows:

Year | CASH FLOW |

0 | -49,000 |

1 | 13,700 |

2 | 25,200 |

3 | 30,500 |

4 | 19,800 |

5 | -8,500 |

The company uses an interest rate of 10% on all projects, Calculate the MIRR of the project using all three methods

Answer #1

MIRR is defined as follows

Terminal value = 13700
( 1 + 0.10) ^{4} + 25200
( 1 + 0.10)^{3} + 30500
( 1 + 0.10)^{2} + 19800
( 1 + 0.10)^{1}

**Terminal value = 112284.37**

**MIRR = 15.65 %**

Solo Corp. is evaluating a project with the following cash
flows: Year Cash Flow
0 –$12,400
year
cash flow
0
- $12,400
1
$5,900
2
$6,200
3
$5,900
4
$4,800
5
-$4,400
The company uses a disount rate of 11 percent and a reinvestment
rate of 8 percent on all of its projects. Calculate the MIRR of the
project using all three methods using these interest rates
. a. MIRR using the discounting approach.
b. MIRR using the reinvestment approach....

Problem 9-20 MIRR [LO6]
RAK Corp. is evaluating a project with the following cash
flows:
Year
Cash Flow
0
–$
30,000
1
12,200
2
14,900
3
16,800
4
13,900
5
–
10,400
The company uses a discount rate of 12 percent and a
reinvestment rate of 7 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...

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]...

A company is evaluating an investment project with the following
forecast cash flows:
Year
0
1
2
3
4
Cash flow($m)
(6.5)
2.4
3.1
2.1
1.8
Using discount rates of 15% and 20%, what is the internal rate
of return of the investment project?

YEAR PROJECT A CASH FLOW PROJECT B CASH
FLOW
0 -110,000 -110,000
1 30,000 0
2 30,000 0
3 30,000 0
4 30,000 0
5 30,000 230,000
(Mutually exclusive projects and NPV) You have been assigned
the task of evaluating two mutually exclusive projects with the
following projected cash flows: If the appropriate discount rate
on these projects is 12 percent, which would be chosen and
why?

Calculate IRR - Stone Sour, Inc., has a project with the
following cash flows: The company evaluates all projects by
applying the IRR rule. If the appropriate interest rate is 9
percent, should the company accept the project?
Year
Cash Flows ($)
0
-$20,000
1
8,500
2
10,200
3
6,200

A project has the following cash flows :
Year Cash Flows
0. ?$11,600
1. 5,050
2. 7,270
3. 4,720
4. ?1,660
Assuming the appropriate interest rate is 10 percent, what is
the MIRR for this project using the discounting approach?
11.00%
17.51%
13.91%
13.20%
16.22%

Solo Corp. is evaluating a project with the following cash
flows:
Year
CF
0
-$48,000
1
17,000
2
21,900
3
25,400
4
18,000
5
-6,500
Use the discounting approach to determine the MIRR. Assume the
discount rate is 8%.
Select one:
A. 15.64%
B. 19.86%
C. 20.32%
D. 20.98%
E. 21.51%

Filter Corp. has a project available with the following cash
flows:
Year Cash Flow
0 −$13,700
1 6,600
2 7,900
3 4,100
4 3,700
What is the project's IRR?

Yellow Day has a project with the following cash flows:
Year Cash Flows
0: −$25,400
1: 9,750
2: 13,900
3: 8,760
4: −2,800
What is the MIRR for this project using the reinvestment
approach? The interest rate is 7 percent

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