Question

10. Cashflow patterns and the modified rate of return calculation Jamison Manufacturing Inc. is analyzing a project with theYouve just learned that the analyst who assembled the projects projected cash flow information used above didnt know his i

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1.
Conventional or Traditional

2.
=MIRR({-1324800;300000;450000;546000;360000},8%,8%)
=8.742779%

3.
=MIRR({-1147500;300000;-350000;420000;280000},8%,8%)
=-6.390719%

4.
No

Add a comment
Know the answer?
Add Answer to:
10. Cashflow patterns and the modified rate of return calculation Jamison Manufacturing Inc. is analyzing a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 35. Cashflow patterns and the modified rate of return calculation Henderson Manufacturing Inc. is analyzing a...

    35. Cashflow patterns and the modified rate of return calculation Henderson Manufacturing Inc. is analyzing a project with the following projected cash flows: Year Cash Flow -$1,600,000 350,000 550,000 660,000 440,000 This project exhibits cash flows. Henderson's desired unconventional modified internal rate 00%. Given the cash flows expected from the company's new project, compute the project's anticipated . (Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR value to two decimal places.) 6.08% 6.84% O...

  • 10. Cashflow patterns and the modified rate of return calculation Locke Manufacturing Inc. is analyzing a project with...

    10. Cashflow patterns and the modified rate of return calculation Locke Manufacturing Inc. is analyzing a project with the following projected cash flows: Year 0 Cash Flow - $1,740,000 375,000 600,000 720,000 480,000 This project exhibits conventional cash flows. Locke's desired rate of return is 6.00%. Given the cash flows expected from the company's new project, compute the project's anticipated modified internal rate of return (MIRR). (Hint: Round all dollar amounts to the nearest whole dollar, and your final MIRR...

  • 8. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing...

    8. Cash flow patterns and the modified rate of return calculation Blue Elk Manufacturing is analyzing a project with the following cash flows: Year O Cash Flow -$1,603,000 $325,000 $450,000 $540,000 $360,000 N W This project has cash flows. Blue Elk Manufacturing's WACC is 9.00%. Calculate this project's modified internal rate of return (MIRR). O 3.52% O O 8.99% O 4.40% O 2.40% O Blue Elk Manufacturing's managers select projects based only on the MIRR criterion. Should Blue Elk Manufacturing's...

  • 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...

    4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Blue Llama Mining Company is analyzing a project that requires an initial investment of $2,750,000. The...

  • 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...

    4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Grey Fox Aviation Company is analyzing a project that requires an initial investment of $550,000. The...

  • 4. Modified internal rate of return (MIRR) Aa Aa The IRR evaluation method assumes that cash...

    4. Modified internal rate of return (MIRR) Aa Aa The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Grey Fox Aviation Company is analyzing a project that requires an initial investment of...

  • 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...

    4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Cute Camel Woodcraft Company is analyzing a project that requires an initial investment of $3,225,000. The...

  • 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...

    4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Green Caterpillar Garden Supplies Inc. is analyzing a project that requires an initial investment of $3,000,000....

  • 8. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...

    8. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Green Caterpillar Garden Supplies Inc. is analyzing a project that requires an initial investment of $3,225,000....

  • 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from...

    4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Grey Fox Aviation Company is analyzing a project that requires an initial investment of $2,500,000. The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT