Must for excel formula for MIRR
Expected Net Cash Flows | ||||||
Time | Project A | Project B | ||||
0 | ($375) | ($575) | ||||
1 | ($300) | $190 | ||||
2 | ($200) | $190 | ||||
3 | ($100) | $190 | ||||
4 | $600 | $190 | ||||
5 | $600 | $190 | ||||
6 | $926 | $190 | ||||
7 | ($200) | $0 | ||||
e. What is each project's MIRR at a cost of capital of 12%? At r = 18%? Hint: note that B is a 6-year project. | ||||||
@ 12% cost of capital | @ 18% cost of capital | |||||
MIRR A = | MIRR A = | |||||
MIRR B = | MIRR B = | |||||
Must for excel formula for MIRR Expected Net Cash Flows Time Project A Project B 0...
Part 2 - The second model isfor a project forGardialFisheries. GardialFisheries is considering two mutually exclusive investments. The projects’ expected net cash flows are as follows: Expected Net Cash Flows for the 7 year Project are: Project A −$375, −300, −200, −100, 600, 600, 926 and, −200 Project B −$575, 190, 190, 190, 190, 190, 190 and, 0 If each project’s cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project...
Compute the MIRR statistic for Project I and note whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 15 percent. Project I Time 0 1 2 3 4 5 Cash Flow –$ 1,000 $ 400 $ 300 $ 200 $ 300 $ 50 Multiple Choice The project's MIRR is 18.19 percent and the project should be accepted. The project's MIRR is 12.67 percent and the project should be...
A project is expected to generate the following cash flows: Year Project after-tax cash flows -$350 150 -25 300 The project's cost of capital is 10%, calculate this project’s MIRR.
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
answer using excel
If the cost of capital is 12%, which project should be chosen? If the cost of capital is 18% which project should be chosen? a) To determine the answer to this above questions you are to calculate the NPV of each project using a required rate of return of 12% and then a required rate of return of 18%. Then construct the NPV profiles for Project A and Project B. (Note: plot the NPVs of both projects...
Problem 10-03 MIRR A project has an initial cost of $54,750, expected net cash inflows of $13,000 per year for 6 years, and a cost of capital of 8%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
Problem 10-03 MIRR A project has an initial cost of $73,075, expected net cash inflows of $11,000 per year for 6 years, and a cost of capital of 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. %
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...
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 $14,000 per year for 9 years, and a cost of capital of 8%. What is the...
The following are the cash flows of two projects: Year Project A Project B 0 −$ 300 −$ 300 1 180 200 2 180 200 3 180 200 4 180 If the opportunity cost of capital is 12%, what is the profitability index for each project?