Mirr of the project using combination approach

Assignment Help Financial Management
Reference no: EM131904186

RAK Corp. is evaluating a project with the following cash flows:

Year Cash Flow

0 –$ 29,200

1 11,400

2 14,100

3 16,000

4 13,100

5 – 9,600

The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR %

Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR %

Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR %

Reference no: EM131904186

Questions Cloud

Considering investing in security services : You are considering investing in Nuran Security Services. Calculate the ROE for the firm.
The stock and bond markets are very efficient : The stock and bond markets are very efficient. bond prices will fall when lenders expect higher rates inflation in the future.
Think about cash flows in two different years : Suppose you face an investment decision in which you must think about cash flows in two different years.
What is the current price of this stock : what should the exchange rate be five years from now? what is the current price of this stock?
Mirr of the project using combination approach : Calculate the MIRR of the project using the reinvestment approach. Calculate the MIRR of the project using the combination approach.
What is the net present value of rebuilding the asset : What is the net present value of rebuilding the asset? Suppose the firm is all equity financed. Will shareholders rebuild the asset in the event of a loss?
What is the fair forward price of five-year forward : If Apple costs $130 today, interest rates are 10%, and Apple pays a $3 dividend every year, what is the fair forward price of a five-year forward?
What was the capital gain yield for the year : If price of this stock climbed to $52 at the end of the year, what was the capital gain yield for the year?
What is the market risk premium-equity risk premium : Assume the nominal risk-free rate is 4.00%, What is the market risk premium? What is the equity risk premium?

Reviews

Write a Review

Financial Management Questions & Answers

  Your investment horizon if you invest in the mutual fund

How much money do you expect to have at the end of your investment horizon if you invest in the mutual fund?

  Calculate expected return-standard deviation of portfolio

Use the following information to calculate the expected return and standard deviation of a portfolio that is 40 percent invested in 3 Doors, Inc., and 60 percen

  Discuss some of the possible reasons for this variability

Price earnings ratios for individual companies vary over time and among firms. Discuss some of the possible reasons for this variability.

  A convertible bond pays interest annually at a coupon rate

A convertible bond pays interest annually at a coupon rate of 5% on a par value of $1,000. The bond has 10 years maturity remaining and the discount rate on otherwise identical non-convertible debt is 6.5%

  What types of bubbles were discussed in the bubble decade

What types of bubbles were discussed in The Bubble Decade? Given that our markets in the U.S. are supposed to be fairly efficient, how can such bubbles exist and why do new bubbles keep occurring?

  Plans to go for vacation

Camilia plans to go for vacation to Australia in 11 years from now. She estimates that she will need 29,358 for the trip. How much does she need to place in a savings account today that earns 6.89% per year (compounded quarterly) to accumulate this a..

  Discussing managerial issues associated with managing

Write a 700- to 1,050-word paper discussing managerial issues associated with managing an organization's IS infrastructure.

  What are the arithmetic and geometric returns for the stock

What are the arithmetic and geometric returns for the stock?

  Difference in security market line and capital market line

Explain the difference between the Security Market Line (SML) and the Capital Market Line (CML). The treasury department of a large Fortune 500 corporation would like to estimate the company’s cost of capital in order to make capital budgeting decisi..

  What is the value of your retirement plan

Assume that you contribute $200 per month to a retirement plan for 20 years. what is the value of your retirement plan after the 50 years?

  How many years did your mother sell books

Your mother has been working for a small bookstore for many years. Her sales in the first year were $34,100 and her sales in the last year were $63,600. If the sales grew at an average rate of 6.56 percent per year. How many years did your mother sel..

  Research indicates that the organziational culture

Research indicates that the organziational culture. has very little impact on the individual employee's ethical behavior. has significant influence on the individual employees's ethical behavior.

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