Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects. Year Cash Flow 0 -$16,900 1 2 3 4 5 8,000 9,200 8,800 7,600 -5,000 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.1 MIRR Discounting approach Reinvestment approach Combination approach % % %

Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects. Year Cash Flow 0 -$16,900 1 2 3 4 5 8,000 9,200 8,800 7,600 -5,000 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.1 MIRR Discounting approach Reinvestment approach Combination approach % % %

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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Nikul
Yellow Day has a project with the following cash flows: YearCash Flows 0 -$27,500 1 10,800 2 22,300 3 10,020 -3,850 What is the MIRR for this project using the reinvestment approach? The interest rate is 8 percent. O 22.28% O 14.09% O 19.93% O 11.95%
ces Duo Corporation is evaluating a project with the following cash flows: Year 0 Cash Flow -$ 29,100 -2345 1 11,300 14,000 15,900 13,000 -9,500 The company uses a discount rate of 12 percent and a reinvestment rate of 7 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Discounting approach MIRR b. Reinvestment approach MIRR % c. Combination approach MIRR %
Ross enterprises is considering a 3 year project with the following cash flows: Time 0: spend $4800 Time 1: collect $2200Time 2: collect $3600 Time 3: collect $1400 Ross's discount rate is 7.0%. What is the NPV of the project? (Do not roundintermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.).
Dragon Products Company is considering two projects. Theprojects’ cash flows are as follows: EXPECTED NET CASHFLOWSYEAR PROJECT A PROJECT B0 ($10300) (12,500)1 1700 28702 1930 24503 2500 47004 2800 45755 4200 3450Discount Rate for both pojects = 6.8% REQUIRED 1. Find the Payback Period [PBP] of both projects2. What is the Discounted PBP of both projects ? 3. Calculate the Net Present Value of the two projectsand decide which one is better?4. What is the profitability index of both products ?What is the function of PI in project selection? 5. What are the IRR of the projects ? Which of theprojects is the best using IRR as a criteria? Why?6. Why is sunk cost not considered when decidingabout selecting a project? Which cost is consideredand why?
A project has the following cash flows: Year Cash Flow 0 - 25,400 1 11,620 2 13,810 3 -5, 550 4 7,310 The discounting rate is 13% and the reinvestment rate is 15%. What is the MIRR for this project using the combination approach?
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 −$ 16,800 1 7,900 2 9,100 3 8,700 4 7,500 5 −4,900 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Duo Corporation is evaluating a project with the following cash flows. Year Cash Flow -$ 16,900 8,000 9,200 8,800 7,600 -5,000 The company uses an interest rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach Reinvestment approach Combination approach % % ྣ| R
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 28,300 012345 10,500 13,200 15,100 12,200 -8,700 The company uses an interest rate of 9 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR % % %
Radhubhai
Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,150 2 1,030 3 1,520 4 1,880 If the discount rate is 11 percent, what is the present value of these cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. What is the present value at 16 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. What is the present value at 22 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Doak Corporation is evaluating a project with the following cash flows: Year 0 1 2 Cash Flow -$ 53,000 16,700 21,900 27,300 20,400 -8,600 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach Reinvestment approach. Combination approach Sover 17.00 % % %

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