Question

15. Barry Inc. is considering a project that has the following cash flow and WACC data....

15. Barry Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 9.45%

Year 0 1 2 3 4 5
CFs -$47,100 8,110 16,220 24,330 32,440 40,550
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Step:1: Computation of Future Value of Cash outflows

Year Cashflows [email protected]% FV

1 8110 1.0945 8876.40

2 16220 1.1979 19429.94

3 24330 1.3111 31896.63

4 32440 1.4350 46551.40

5 40550 1.5706 63687.83

TOTAL 170442.20

Step:2: Computation of Present Value of Initial Cash Outflow

Year   Cashflow   [email protected]% PV

0 47100 1 47100

Step:3: Computation of Modified Internal Rate of Return(MIRR)

MIRR =

=

=

=10.43-1

=9.43

Therefore Modified Internal rate of Return is 9.43%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Malholtra Inc. is considering a project that has the following cash flow and WACC data. What...
Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 12.25% Year 0 1 2 3 4 Cash flows -$1700 $600 $640 $680 $720
Talent Inc. is considering a project that has the following cash flow and WACC data. WACC:...
Talent Inc. is considering a project that has the following cash flow and WACC data. WACC: 8% Year 0 1 2 3 Cash flows -$1,200 $400 $500 $500 (1) What is the project's NPV? (2) What is the project's IRR? (3) What is the project's Payback Period? (4) What is the project's Discounted Payback Period?
Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC:...
Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC: 10.00% Year 0 1 2 3 4 Cash flows -$1,000 $510 $440 $425 $405 What is the project's payback? What is the project's discounted payback? Is the project worthwhile to undertake? (Would you undertake the project?) Why?
DS is considering a project that has the following cash flow and WACC data. What is...
DS is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC: 10.00% Year 0 1 2 3 Cash flows -$2,000 $800 $800 $1,000
Boca Center Inc. is considering a project that has the following cash flow and WACC data....
Boca Center Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. WACC: 14.00% Year 0 1 2 3 4 Cash flows -$1,200 $400 $425 $450 $475 Group of answer choices 62.88 41.25 45.84 50.93 56.59 103.95 110.02 36.65 Flag this Question Question 123.13 pts Maxwell Feed & Seed is considering a project that has...
Swan Enterprises is considering a project that has the following cash flow and WACC data. What...
Swan Enterprises is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC=10.50% Year 0 1 2 3 4 Cash Flows -$850 $300 $320 $340 $360
Hindelang Inc. is considering a project that has the following cash flow and WACC data. What...
Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box. WACC: 14% Year: 0 1 2 3 4 Cash flows: -$875 $350 $375 $400 $425
Sam Corp. is considering a project that has the following cash flow data.  What is the project's...
Sam Corp. is considering a project that has the following cash flow data.  What is the project's IRR (Internal Rate of Return)? Note that a project's projected IRR can be less than the weighted average cost of capital (WACC) or negative, in both cases it will be rejected. Show work. Year                           0                1                2               3           4   Cash flows            -$1,900        $600          $825           $950   -$50 Helmand Inc. is considering a project that has the following cash flow and WACC data.  What is the project's MIRR?  Note that a project's projected MIRR can be less than...
Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC data....
Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC = 10% Year:   0   1   2   3 Cash flows: -$1,000 $450 $440 $430
Masulis Inc. is considering a project that has the following cash flow and WACC data. What...
Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$1,300 $525 $485 $445 $405 Group of answer choices 3.32 years 2.62 years 2.75 years 3.42 years
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT