MIRR A project has the following cash flows:012345$500$202-$X$196$350$451▸ DetailsThis project requires two outflows at Years 0 and 2, but the remaining cash flows arepositive. Its WACC is 10%, and its MIRR is 14.14%. What is the Year 2 cash outflow?SHOW ANSWER

MIRR is a financial metric used to evaluate an investment's profitability by considering both the…

Answered: MIRR A project has the following cash…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Time, Co. has a project available with the following cash flows: Cash Flow -$ 31,190 13,170 14,740 Year 0 1 2 3 4 21,060 12,200 If the required return for the project is 9.9 percent, what is the project's NPV? Multiple Choice $19,687.63 $15,791.12 $8,863.54 $17,226.67
Suppose a project has the following cashflows and the discount rate (required return) is 12%. t 0 1 2 3 4 5 $ Cash flow (30,000) 8,000 10,000 12,000 16,000 12,000 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.59 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.62 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.12 The project's discounted cumulative cashflow turns positive between year 4 and 5, to be precise it is 4.22
A project has the following cash flows: Year Cash Flow 0 $ 37,000 1 -18,000 227,000 What is the IRR for this project? (Round the final answer to 2 decimal places.) IRR % What is the NPV of this project, if the required return is 11% ? ( Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 0% ? ( Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 22 % ? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $
The following table gives the cash flows for Project A and Project B: Year Project A Project B lo -3000 |-4000 1 1000 1500 2 1000 1800 3 2500 2000 If the discount rate is 15%, which project should we invest in? Project A Project B Both A and B Data insufficient.
There is a project with the following cash flows : Year Cash Flow 0 −$ 23,350 1 6,300 2 7,400 3 8,450 4 7,350 5 5,900 What is the payback period?
The following are the cash flows of two projects: Year Project A Project B -$200 -$200 01234 Project A B If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Profitability index 80 80 80 80 00 100 100 100 Is the project with the highest profitability index also the one with the highest NPV? Yes No
A project has the following cash flows: 0 1 -$400 $195 2 $176 111 4 5 ㅓ $350 $488 This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 13%, and its MIRR IS 14.21%. What is the Year 2 cash outflow? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback period
Suppose a project has the following cash flows. What is the NPV if the cost of the project is $105,000 and the required return is 9.75%? Year Cash Flow $28.000 32,000 3 36,000 4 39,000 O$6,000 O $20,678 $1,193 $27,335 O $30,000 Page 16 of 30
Rayver Cruz is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC: 11.00% Year 1 Cash flows - $800 $350 $350 $350 9.84% O 10.94% 12.15% 13.50% 8.86%
You are considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash Flow -900 350 450 550 Group of answer choices 2.40 1.53 1.96 2.18 2.62
Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF Part a Determine the ERR for this project. 0 1 2 3 4 5 6 % -$50 $32 $32 $32 $32 $32 $32 Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.

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MIRR A project has the following cash flows: 0 1 2 3 4 5 $500 $202 -$X $196 $350 $451 ▸ Details This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 10%, and its MIRR is 14.14%. What is the Year 2 cash outflow? SHOW ANSWER