Your firm is considering a project that will cost $4.548 million up front, generate cash flows of $3.50 million per year for 3 years, and then have a cleanup and shutdown cost of $6.00 million in the fourth year.
a. How many IRRs does this project have?
b. Calculate a modified IRR for this project assuming a discount and compounding rate of 10.0%.
c. Using the MIRR and a cost of capital of 10.0%,
would you take the project?
a. How many IRRs does this project have?
The project has
▼
1
2
3
4
IRRs. (Select from the drop-down menu.)
a. There are 2 irrs because there is change of sign cash flows
twice.
b. PV of cost =4.548+6/1.1^4 =8.6461
FV of cash flows =3.50*1.1^3+3.50*1.1^2+3.50*1.1 =12.7435
MIRR=(12.7435/8.6461)^(1/4)-1=10.18%
c. Since MIRR is greater than cost of capital project should be
accepted
Your firm is considering a project that will cost $4.548 million up front, generate cash flows...
Your firm is considering a project that will cost $4.681 milion up front, generate cash flows of $3.55 milion per year for 3 years, and then have a cleanup and shutdow a. How many IRRs does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 10.5% c. Using the MIRR and a cost of capital of 10.5%, would you take the project? a. How many IRRs does this project have? The...
b Your firm is considering a project that will cost $4.499 million up front, generate cash flows of $3.49 milion per year for 3 years, and then have a cleanup and shutdown cost of $6.03 million in the fourth year. 2. How many IRRS does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 9.5% c. Using the MIRR and a cost of capital of 9.5%, would you take the project?...
Your firm is considering a project that will oost $4.499 million up front, generate cash flows of $3.49 million per year for 3 years, and then have a cleanup and shutdown cost of $6.03 millon in the fourth year a. How many IRRS does this project have? b. Calculate a modifed IRR for this project assuming a decount and compounding rate of 9.5% e. Using the MIRR and a cost of capital of 9.5 %, would you take the project?...
Your firm is considering a project that will cost $4.704 million up front, generate cash flows of $3.55 million per year for 3 years, and then have a cleanup and shutdown cost of $5.98 million in the fourth year. A.) How many IRRs does this project have? B.) Calculate a modified IRR for this project assuming a discount and compounding rate of 10.3%. C.) Using the MIRR and a cost of capital of 10.3%, would you take the project?
Your firm is considering a project that will cost $4.422 million up front, generate cash flows of $3.46 million per year for 33 years, and then have a cleanup and shutdown cost of $6.04 million in the fourth year. a. How many IRRs does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 9.8%. c. Using the MIRR and a cost of capital of 9.8%, would you take the project
Your firm is considering a project that will cost $4.422 million up front, generate cash flows of $3.46 million per year for 33 years, and then have a cleanup and shutdown cost of $6.04 million in the fourth year. a. How many IRRs does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 9.8%. c. Using the MIRR and a cost of capital of 9.8%, would you take the project
Answer all. Please quick thank you! Angels be with you. Your firm is considering a project that will cost $4.593 million up front, generate cash flows of $3.52 million per year for 3 years, and then have a cleanup and shutdown cost of $6.01 million in the fourth year. a. How many IRRs does this project have? b. Calculate a modified IRR for this project assuming a discount and compounding rate of 9.9%. C. Using the MIRR and a cost...
NPV and EVA A project cost $1.2 million up front and will generate cash flows in perpetuity of $210,000. The firm's cost of capital is 14%. a. Calculate the project's NPV. b. Calculate the annual EVA in a typical year. c. Calculate the overall project EVA. a. The project's NPV is $ (Round to the nearest dollar.)
NPV and EVA A project cost $1.2 million up front and will generate cash flows in perpetuity of $210,000. The firm's cost of capital is 14% a. Calculate the project's NPV. b. Calculate the annual EVA in a typical year c. Calculate the overall project EVA a. The project's NPV is $ 300000 (Round to the nearest dollar.) b. The annual project EVA in a typical year is $ (Round to the nearest dollar.)
NPV and EVA A project cost $1.7 million up front and will generate cash flows in perpetuity of $270,000. The firm's cost of capital is 14%. a. Calculate the project's NPV. b. Calculate the annual EVA in a typical year. c. Calculate the overall project EVA. a. The project's NPV is $1 (Round to the nearest dollar.) b. The annual project EVA in a typical year is $17. (Round to the nearest dollar) C. The overall project EVA is S...