Considering investing in project with cash flows

Assignment Help Financial Management

Reference no: EM132044892

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12 percent, and that the maximum allowable payback and discounted payback statistics for your company are 3 and 3.5 years, respectively. Time: 0 1 2 3 4 5 Cash flow –$305,000 $51,800 $70,000 $113,000 $108,000 $67,200 Use the MIRR decision rule to evaluate this project. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) MIRR % Should it be accepted or rejected?

Reference no: EM132044892

Questions Cloud

What are the pros and cons of government regulation : What are the pros and cons of government regulation of health care products and services to the consumer?

What is meant by operational and fiscal accountability : What is meant by operational and fiscal accountability? Explain why governmental fund financial statements are insufficient for users

Define the hfacs model : Explain, define the HFACS model. How is this model applied in the management of human error?

What is the bank balance : Bank error charged the company account for $3,750 check of another depositor. What is the bank balance on Nov. 2010

Considering investing in project with cash flows : Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 12%

Establish control systems for a manager : Why it is important to establish control systems for a manager?

Rent space for your business in strip mall : Assume you will start a new restaurant and rent space for your business in a strip mall or 3-story office building in Fairfax County,

What is going to happen to my child biologically : Pretend that you are a psychologist who is meeting with a client concerned about her 14-year-old. Your client tells you that she is not sure what to expect.

Corporate structure on organizational performance : Explain what it means by "structure follows strategy' and explain the impact of corporate structure on organizational performance

User Account

All Pages