Question

Your firm is trying to decide between two different projects. Your boss has asked you to use the MIRR criteria at the cost of capital of 13%. Which of these projects will you choose?

**CAN YOU SHOW STEPS**

Year Poject A Project B

0 -100,000 -75,000

1 125,000 15,000

2 100,000 50,000

3 75,000 75,000

4 50,000 100,000

5 15,000 150,000

Answer #1

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What sales volume would be required in order to break even, i.e.,
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points)
Your firm is trying to decide between two different projects.
Your boss has...

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What is the equivalent annual annuity for each project? Which
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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!!!

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%
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A firm must choose between two mutually exclusive projects, A
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years 1 through 5, respectively. Project B has an initial cost of
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Cost of equipment required $100,000 $0
Working capital investment required $0 $100,000
Annual cash inflows $21,000 $15,750
Salvage value of equipment in six years $8,000 $0
Life of the project 6 years 6 years
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Project Alpha requires an initial investment of 50,000 today and is
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Project Beta requires an intial investment of 85,000 and is
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