The NPV ( Net present value ) and IRR ( Internal rate of return ) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason. Introduction: The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment. Answer: The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

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Answer 1

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Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

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Answer 2

Question

Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

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Answer 4

Question

Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

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Answer 5

Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

Answer 6

Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

Answer 7

Chapter 9, Problem 28QP

Summary Introduction

To calculate: The NPV (Net present value) and IRR (Internal rate of return) for the reinvestment project and identify whether the computed IRR is the MIRR (Modified internal rate of return) of the project with a reason.

Introduction:

The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero. The net present value is one of the capital budgeting techniques, which is used to identify the profitability in the proposed investment.

Answer:

The NPV for the reinvested project is -$95,069.01 and IRR is 8.73%. As the IRR calculation might look like MIRR computation, but they are different. It is a calculation of the standard IRR.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 9.1 - Prob. 9.1ACQ Ch. 9.1 - Prob. 9.1BCQ Ch. 9.2 - Prob. 9.2ACQ Ch. 9.2 - Why do we say that the payback period is, in a...Ch. 9.3 - Prob. 9.3ACQ Ch. 9.3 - What advantage(s) does the discounted payback have...Ch. 9.4 - What is an average accounting rate of return...Ch. 9.4 - What are the weaknesses of the AAR rule?Ch. 9.5 - Prob. 9.5ACQ Ch. 9.5 - Is it generally true that an advantage of the IRR...

Solution Summary: The author calculates the NPV (Net present value) and IRR (Internal rate of return) for a reinvestment project.

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