#3.
Year | Cash flows of project Boyaz |
0 | -$60,000 |
1 | 24,000 |
2 | 24,000 |
3 | 24,000 |
4 | 24,000 |
IRR = | 21.86% |
#5.
Year | Cash flows of Deckland Corp. |
1 | 60,000 |
2 | 100,000 |
3 | 120,000 |
Cost of capital | 12.00% |
Present value | 218,704 |
Terminal value | 307,264 |
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Question 3 W Project Boyaz is expected to generate $24,000 each year for the next four...
question #8 A project is expected to generate the following cash flows: Year Project after-tax cash flows on nimi -$350 150 -25 300 The project's cost of capital is 10%, calculate this project's MIRR. Fill in the blank
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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: Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $500,000. The project's expected cash flows are: Year Year 1...
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. 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...
A project has an initial cost of $44,700, expected net cash inflows of $15,000 per year for 12 years, and a cost of capital of 13%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent. A project has an initial cost of $60,000, expected net cash inflows of $14,000 per year for 9 years, and a cost of capital of 8%. What is the...
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