Find the modified internal rate of return

Assignment Help Financial Management
Reference no: EM13728581

Find the modified internal rate of return (MIRR) for the following series of future cash flows. The company can reinvest the cash flows from the project at an annual rate of 4.45%. The initial outlay is $670,560.

Year 1: $182,317

Year 2: $141,519

Year 3: $130,343

Year 4: $182,821

Year 5: $147,278

Round the answers to two decimal points

Reference no: EM13728581

Questions Cloud

Philosophy that enables employees : Employee empowerment is a philosophy that enables employees to make decisions about their jobs. It helps employees own their work and take responsibility for their results.
Using the internal rate of return : Tall trees inc is using the Internal Rate of Return The IRR when evaluating projects. You have to find the IRR for the companys project. The initial outlay for the project is $450,000. The project will produce the following after tax cash inflows of
Describe the role of business inventory changes : Describe the role of business inventory changes in determining the equilibrium level of GDP and changes in level of GDP.
Series of training document primers : As a start to this series of training document primers, I'll try to answer the following questions in short:
Find the modified internal rate of return : Find the modified internal rate of return (MIRR) for the following series of future cash flows. The company can reinvest the cash flows from the project at an annual rate of 4.45%. The initial outlay is $670,560.
Consider an economy with the following cobb-douglas producti : Consider an economy with the following Cobb-Douglas production function (note that this production function does not contain natural capital). If the capital stock and real GDP grows at 3 percent per year, labor hours grow at 4 percent per year, and ..
Outlining maryland court system : This paper is about outlining Maryland's court system in short. We'll have the chance to be familiar with basic concepts of state justice system and get to know more about the following issues:
Find a resource about one of the classical authors mentioned : Find a resource about one of the Classical authors mentioned in Carl Richard's lecture, and tell us, in about 300 words about the topic of the resource, why it might be useful.
Future cash flows assuming the companys cost of capital : Find the net present value for the following series of future cash flows assuming the companys cost of capital is 9.7%.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the minimum expected annual return for stock

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

  Determine the cost of the cash discounts to warren

Warren Motor Company sells $30 million of its products to wholesalers on terms of "net 30." Currently, the firm's average collection period is 48 days. In an effort to speed up the collection of receivables, Warren is considering offering a cash disc..

  Calculate the internal rate of return

Calculate the Internal Rate of return for both projects and again recommend which of the two projects, if any, should be selected based on this information.

  What will the cost of the vehicle

What will the cost of the vehicle be at the end of three years and you want to save a equal amount at the end of each month for the next three years in order to pay cash for the new vehicle.

  Assume that amazon has a stock-option plan for top

assume that amazon has a stock-option plan for top management. each stock option represents the right to purchase a

  Swiss franc denominated bond sale

Apple just completed a large, Swiss Franc denominated bond sale. In the discussion board for this topic, explain why a company that has almost $200 billion in cash would decide to issue bonds and why they would choose to use Swiss Franc denominated b..

  What is the lenders expected annual yield

A $150,000, 15-year, monthly payment mortgage loan carries an interest rate of 5.5%, plus three points. The points are financed. What is the lender’s expected annual yield if the loan is amortized over the full 15 years?

  Tech industries regarding the proposed new production line

Tech Industries, a contract manufacturer of circuit boards, is evaluating an investment in a new production line to handle the growing demand from its customers, who produce consumer electronic products. Based on reasonable growth assumptions, the NP..

  Discuss and analyse all the issues in order

Discuss and analyse all the issues in order, and any other implications arising from this scenario for presentation to Mark Golledge .

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  What is the bond price and what is the current yield

Energy Tech company issued an 8% (semi-annual payment) 20 year bond 5 years ago. If the yield of similar bond today is 6%, what is the bond price? What is the current yield?

  Evaluate the proposal to purchase advanced machine

Calculate the payback period if advanced machine is purchased and calculate the net present value if advanced machine is purchased.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd