Hindelang Inc is considering a project that has the following cash fow and WACC data What...

Question

Question

Answer 1

Answer #1

Answer: MIRR : 16.67 %

Present value of costs ( PVC ) = 850.

Terminal Value ( TV ) =300 x ( 1.125) ³ + 320 ( 1.125) ² + 340 x ( 1.1250 ) + 360 = 427.15 + 405 + 382.50 + 360 = 1,574.65

MIRR is obtained as follows:

PVC = TV / ( 1 + MIRR ) ⁴

or ( 1 + MIRR ) ⁴ = TV / PVC = 1,574.65 / 850 = 1.85253

MIRR = 0.1667 or 16.67 %

Answer 2

Similar Homework Help Questions

QUESTION 19 Malhotra Inc. is considering a project that has the following cash flow and WACC...

QUESTION 19 Malhotra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC 10.0096 Year0 Cash flows $800 3 $340 $300 $320 $360 a. 17.4296 b. 19.3396 O c. 16.20% d. 21.42% e. 17.07%
Malholtra Inc. is considering a project that has the following cash flow and WACC data. What...

Malholtra Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC: 10.00% Year 0 1 2 3 4 Cash flows $750 $300 $320 $340 $360
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data.

Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.WACC: 9.00% Year 0 1 2 3Cash flows -$1,000 $450 S450 $450 14.53% 17.29% 13.70% 13.84% 13.28%

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What...

Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box. WACC: 11% Year: 0 1 2 3 4 Cash flows: -$875 $350 $375 $400 $425
Nichols Inc. is considering a project that has the following cash flow data. What is the...

Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Year 0 1 2 3 4 5 Cash flows −$1,250 $325 $325 $325 $325 $325 a. 10.92% b. 9.43% c. 11.47% d. 10.40% e. 9.91% Westwood Painting Co. is considering a project that has the following cash flow and cost...
Gamma Enterprises, Inc. is considering a project that has the following cash flow and WACC data....

Gamma Enterprises, Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box. WACC: 13% Year: 0 1 2 3 4 Cash flows: -$1,100 $300 $320 $340 $550

Gamma Enterprises, Inc. is considering a project that has the following cash flow and WACC data....

Gamma Enterprises, Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box. WACC: 11% Year: 0 1 2 3 4 Cash flows: -$1,100 $300 $320 $340 $550
22. Cornell Enterprises is considering a project that has the following cash fnow and WACC data...

22. Cornell Enterprises is considering a project that has the following cash fnow and WACC data What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 10.00% Year 01 2 Cash flows $825 $450 $460 $470 a. $396.72 b. $317.37 C. $336.42 d. $323.72 e. $257.07 23. the projects Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is MIRR?...
Harry's Inc is considering a project that has the following cash flow and WACC data. What is the...

Harry's Inc is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, itshould be rejected-WACC 10.25% Year 0 Cash flow -10001 2 3 4 5300 300 300 300 300

Harry's Inc. is considering a project that has the following cash flow and WACC data. What...

Harry's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 9.50% Year Cash flows $1,000 $300 $300 S 300 $300 S300 a) 0179.26 Ob) 0135.20 OC) 0120.01 d) 0151.91 e) 0133.68