How is the mirr better than the irr method

Assignment Help Finance Basics
Reference no: EM132001615

Question: How is the MIRR better than the IRR method of capital budgeting?

a) Present and future values are calculated using the cost of capital rather than the IRR

b) The cash inflows are projected at the beginning of the project.

c) Present value of all cash flows are considered to calculate the rate of return.

d) Cash flows are projected to the end of the project using the IRR.

Reference no: EM132001615

Questions Cloud

Determine in what ways the us government currently tries : Examine the U.S. Government's support during the Great Depression for programs, such as the Federal Arts Project, the Federal Writers' Project.
Misconception-preconception check : What prior experiences beliefs do most people have about statistics that may hinder or block new learning in a statistic course?
Explain the outcomes of the strategy : A mining company located in Australia has entered into a contract to export coal to Japan with delivery in 90 days. The contract is denominated in the Japanese.
Describe your overall reaction after attending the event : As a way of experiencing the Humanities beyond your classroom, computer, and textbook, you are asked to do a certain type of "cultural activity" .
How is the mirr better than the irr method : How is the MIRR better than the IRR method of capital budgeting? a) Present and future values are calculated using the cost of capital rather than the IRR
Firm believer in pure expectation yield curve theory : The 3M spot rate is 6% and the 6M spot rate is 5%. As a firm believer in pure expectation yield curve theory,
What proportion of robins have wingspans longer : What proportion of robins have wingspans longer 15.5 inches?
Estimate the before-tax and after-tax component cost : Estimate the before-tax and after-tax component cost of debt for the firm. Estimate the component cost of preferred stock (if applicable) for the firm.
What is the expected return of stock after transaction : What is the expected return of the stock after this? transaction, round to two decimal places?

Reviews

Write a Review

Finance Basics Questions & Answers

  Do capital budgeting analysis based on aar method npv irr

do capital budgeting analysis based on aar method npv irr acfr and payback. what decision would you make based on your

  Calculate the average rate of return for each stock during

Calculate the average rate of return for each stock during the period 2000 - 2009. Assume you held a portfolio of 70% Stock A and 30% Stock B during the period. Calculate the assumed rate of return each year for your portfolio. Then calculate the ave..

  What is the book value of klingon’s assets today

If all the current assets were liquidated today, the company would receive $2.7 million cash. What is the book value of Klingon's assets today? What is the market value?

  Consider a 30-year mortgage at an interest rate of 12

consider a 30-year mortgage at an interest rate of 12 compounded monthly with a 900 monthly payment. what is the total

  Explain what is meant by the signaling effects of dividend

explain what is meant by the signaling effects of dividend

  Could you generate a synthetic swap using appropriate

Create a synthetic equivalent of this swap using two Forward Rate Agreements (FRA) contracts. Describe the parameters of the selected FRAs in detail.Could you generate a synthetic swap using appropriate interest rate option?

  Standard deviation of returns on resulting portfolio

Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 18% and a risk free asset with an interest

  Should the company be liquidated or reorganized

What are the advantages and disadvantages of a voluntary workout to resolve financial distress? What are the advantages and disadvantages of declaring bankruptcy to resolve financial distress?

  Identify two financial intermediaries

Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?

  Calculate the after tax cash flows for the project

The firm has decided on a capital structure consisting of 30% debt and 70% new common stock. Calculate the WACC and explain how it is used in the capital budgeting process. Calculate the after tax cash flows for the project for each year. Explain t..

  Discuss currency exchange rate movements during the second

discuss currency exchange rate movements during the second half of 2008. did the u.s dollar strengthen or weaken versus

  How find the weighted average cost of capital

Find the weighted average cost of capital

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