How does the mirr avoid the irr shortcomings

Assignment Help Finance Basics
Reference no: EM132041496

Question: Please Answer in detail and explain the answer

a) What are the main differences between the NPV method and the IRR? Assumptions on reinvestment and anything else

b) When does the IRR give you the wrong answers?

c) How does the MIRR avoid the IRR shortcomings?

Reference no: EM132041496

Questions Cloud

Resource dedicated to activity : Assume there is only one resource dedicated to each activity. Which of the following conclusions can be drawn?
Increase in the ethical behavior of a firm using tqm : If so, what might account for an increase in the ethical behavior of a firm using TQM principles?
What should firms do to cope with these differences : What should firms do to cope with these differences? How do the differences relate to ethical practices?
How can you maintain a current knowledge of threats : What steps would you recommend to guard against a reoccurrence? How can you maintain a current knowledge of threats?
How does the mirr avoid the irr shortcomings : What are the main differences between the NPV method and the IRR? Assumptions on reinvestment and anything else.
Identifying the control limits and drivers : Analyze these data using a control chart that would provide for a 95% confidence interval, identifying the control limits and drivers
Develop an annual operating budget : You are planning to open a small shelter for homeless men in the basement of your church. The governing board has promised you the funds needed to start up.
Describe the counterargument : In three paragraphs describe three (3) arguments that go against your position regarding the Electoral College. This is called addressing counterarguments.
Find withdraw amount each month from your account : You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 a month in a bond account.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the clinic forecasted external financing requirement

Revenues for the past year were $400, and fixed assets were used at 100 percent of capacity. Revenues are expected to grow by 10 percent in the coming year.

  What are the retained earn

In addition, the company had an interest expense of $4,256, and a tax rate of 43%. The company paid$9,026 as dividends. If the retained earnings is 2006 were $56,533, what are the retained earnings in 2007?

  Explain how international letters of credit were established

B7530- Explain how International Letters of Credit were established. Analyze how International Letters of Credit facilitated international trade for the firms.

  A companys fixed operating costs are 650000 its variable

a companys fixed operating costs are 650000 its variable costs are 2.45 per unit and the products sales price is 4.25.

  How to add stockholders wealth during 2012

Find how much value did management add to stockholders' wealth during 2012? Write out your answer completely.

  How much do you expect the price of the asset

You own a fixed income asset with a MaCaulay duration of 5 years. If the level of required yields, which is currently at 8%, goes down by 0.10%, how much do you expect the price of the asset to change (in percentage terms)?

  Current spot and forward rates between the us and mexico

There is only one supplier of the brand of tablets you would like to stock in your store, and that firm is located in Mexico. You have researched the current spot and forward rates between the U.S. and Mexico, as indicated in Table-1:

  Determine the total earnings

The initial salary of Mr. Kiptum is Sh. 42,000 per annum. His salary increases by 13% each year. Determine his total earnings after 15 years. Give your answer to the nearest thousands

  The kings want to decide how much additional insurance

Dave and Karen King are a two-income couple in their early thirties. They have two children, ages 6 and 3. Dave's monthly take-home pay is $3,600, and Karen's is $4,200. The Kings want to decide how much additional insurance they would need, i..

  The entire year if volume continues at its current level

The following scenario that is about to With these points in mind, Brent thought that a break-even analy¬sis would be very useful in making the final decision. Specifically, he wanted to develop answers to the following questions:

  What is the material quantity variance

During the first quarter, 5,000 units were made, at an actual cost of $10.50 per unit (three pieces at $3.50 per piece). What is the material quantity variance?

  What is the most expensive publicly traded stock

What is the most expensive publicly traded stock in the United States? Go to finance.yahoo.com and enter BRKA (for Berkshire Hathaway Class A).

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