Question

Reddington Enterprises is considering the two capital budgeting projects with the following cash flows that have a WACC of 12%.

Year Redd Wine Vineyards Kaplan Cleaners

0 -200,000 -200,000

1 50,000 175,000

2 125,000 125,000

3 200,000 100,000

4 300,000 75,000

What is the MIRR for Kaplan Cleaners at its WACC of 12%?

31.0% 57.2% 12.0% 32.8% 43.4%

show steps pls!!!

Answer #1

Reddington Enterprises is considering two capital Budget
projects with the following cashflows at a WACC of 12%. At what
rates do these projects have the same NPV?
Red Wine Vineyards Kaplan Cleaners
0 -200,000 -200,000
1 50,000 175,000
2 125,000 125,000
3 200,000 100,000
4 300,000 75,000
Answer choices:
A. 12.0%
B. 43.4%
C. 19.5%
D. 25.7%
E. 32.8%

Gore Global is considering the two mutually exclusive projects
below. The cash flows from the projects are summarized below.
Year
ManBearPig Project Cash Flow
Flying Car Cash Flow
0
-$100,000
-$200,000
1
25,000
50,000
2
25,000
50,000
3
50,000
80,000
4
50,000
100,000
What is the ManBearPig’s internal rate of return (IRR) at a 12%
cost of capital?
A.
12.7%
B.
10.0%
C.
14.6%
D.
13.0%
E.
15.9%
Reddington Enterprises is considering the two capital budeting
projects with the following...

A firm is considering two mutually exclusive projects, X and Y,
with the following cash flows:
0
1
2
3
4
Project X
-$1,000
$100
$320
$430
$650
Project Y
-$1,000
$1,000
$100
$50
$50
The projects are equally risky, and their WACC is 12%. What is
the MIRR of the project that maximizes shareholder value? Round
your answer to two decimal places. Do not round your intermediate
calculations.

Tara is evaluating two mutually exclusive capital
budgeting projects that have the following characteristics:
Cash Flows
Year
Project Q
Project R
0
$(4,000)
$(4,000)
1
0
3,500
2
5,000
2,100
IRR
11.8%
28.40%
If the firm's required rate of return (r) is 10 percent, which
project should be purchased?
a.
Both projects should be purchased, because the IRRs for both
projects exceed the firm's required rate of return.
b.
Neither project should be accepted, because their NPVs are too
small...

Tara is evaluating two mutually exclusive capital
budgeting projects that have the following characteristics:
Cash Flows
Year
Project Q
Project R
0
$(4,000)
$(4,000)
1
0
3,500
2
5,000
2,100
IRR
11.8%
28.40%
If the firm's required rate of return (r) is 10 percent, which
project should be purchased?
a.
Both projects should be purchased, because the IRRs for both
projects exceed the firm's required rate of return.
b.
Neither project should be accepted, because their NPVs are too
small...

Your
firm is considering two projects with the following cash
flows.
WACC
6%
6%
year
Project A
Project B
0
-55,000
-70,000
1
10,000
10,000
2
9,000
10,000
3
8,000
10,000
4
7,500
10,000
5
7,500
10,000
6
7,500
10,000
7
7,500
10,000
8
7,500
12,000
a. Calculate NPV and IRR for
both projects
NPV
IRR
b. Do the
following 2...

CAPITAL BUDGETING PROJECT
NEWMAN ENTERPRISES, Inc. is a multinational conglomerate
corporation providing a wide range of goods and services to its
customers. As part of its budgeting process for the next year, it
has three mutually exclusive projects under consideration, and it
might decide which project should receive the investment funds for
this year.
As part of the financial analysis team, it is up to you to
determine the appropriate valuation of each project. However,
before you can determine the...

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