Mutually exclusive projects-what is mirr of better project

Assignment Help Financial Management
Reference no: EM131332399

Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year Project X Project Y 0 ($2,000) ($2,000) 1 200 2,000 2 600 200 3 800 100 4 1,400 100 The projects are equally risky, and their cost of capital is 10%. You must make a recommendation, and you must base it on the modified IRR. What is the MIRR of the better project?

Reference no: EM131332399

Questions Cloud

Prepare in good form a statement of net position : Prepare, in good form, a Statement of Net Position for Southern State University as of June 30, 2015. Record the increase in the present value of the receivable in the temporarily restricted net asset class as of December 31.
Presented in graph or table format : Using the Internet, the text, or another reliable source such as a newspaper or periodical site, (not a scholastic or school site like Khan Academy and not Wikipedia), research some important data that has been presented in graph or table format. ..
Is it important that you understand how to use statistics : Is it important that you understand how to use statistics? Why, or why not? How are statistics used in your field of study?What is the difference between descriptive and inferential statistics?List several examples of descriptive statistics and infe..
Draw the graph of the given linear function : Draw the graph of the following linear function and give the domain and range. Solve the inequality below and write the solutions in interval notation
Mutually exclusive projects-what is mirr of better project : Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year Project X Project Y 0 ($2,000) ($2,000) 1 200 2,000 2 600 200 3 800 100 4 1,400 100 The projects are equally risky, and their cost ..
Displayed in front of the dealership : A car dealership has 8 red, 13 silver and 5 black cars on the lot. Ten cars are chosen randomly to be displayed in front of the dealership.
Find evidence of positive autocorrelation : a. Fit a simple linear regression model by ordinary least squares and obtain the residuals. Also obtain s{b0} and s{b1}. b. Plot the residuals against time and explain whether you find any evidence of positive autocorrelation.
What is effective annual rate on this loan : if you are choosing to invest in the stock market, what stocks would you choose? Why? Are the criteria you are using quantitative or qualitative? You have a car loan with a nominal rate of 6.25 percent. With interest charged monthly, what is the effe..
Describe the five types of prezygotic reproductive barriers : Describe the five types of prezygotic reproductive barriers. Give a brief description of each. Beginning with fertilization, describe the main stages of animal development, Give a brief description of each stage

Reviews

Write a Review

Financial Management Questions & Answers

  How small business can recruit qualified employees

How small Business can recruit qualified Employees? Suggest any 3 Methods. Prepare an essay on Motivation Theories. Explain any 6 theories.

  Describe the profit maximisation concept

Describe the ‘profit maximisation’ concept and discuss why a finance manager who focuses on this approach will not likely to achieve the firm’s fundamental financial objective. Explain how the concept of risk aversion may relate to investment decisio..

  Calculate pcd return on sales and roi for 2014

PCD managers are evaluated and rewarded on the basis of ROI defined as operating income divided by total assets. Barkley Industries expects its divisions to increase ROI each year.

  Each plan as compared to that for an all-equity plan

Sanborn Corp. is comparing two different capital structures. Plan 1 would result in 3,100 shares of stock and $23,160 in debt. Plan II would result in 2,500 shares of stock and $46,320 in det. The interest rate on the debt is 7 percent. In part (a), ..

  Company return on equity

Calculate the company's return on equity and explain whether the managers are providing a good return on the capital provided by the company's shareholders. Diagram and explain the operating cycle of a service company.

  Investing in project with year-end after-tax cash flows

You are considering investing in a project with the following year-end after-tax cash flows: Year 1: $57,000 Year 2: $72,000 Year 3: $78,000 If the initial outlay for the project is $180,000, compute the project's internal rate of return.

  How large a payment you accept for future stream of income

Assuming an interest rate of 6 percent, how large a payment would you accept today for this future stream of income?

  What is cost of invoice in dollars at the current spot rate

You are concerned about your transaction exposure on a recent purchase from an importer in Germany. The invoice, just sent, is 95,000 euros payable in 60 days, which will be about mid-September. What is the cost of the invoice in dollars at the curre..

  How would this affect the slope of the ae curve

Suppose a country bans trade with other countries, so net exports are always zero. - How would this affect the slope of the AE curve? Explain.

  What is the firms total corporate value in millions

Mooradian Corporation’s free cash flow during the just-ended year (t = 0) was $150 million, and its FCF is expected to grow at a constant rate of 5.0% in the future. If the weighted average cost of capital is 12.5%, what is the firm’s total corporate..

  What are the elements of the cash conversion cycle

What are the elements of the cash conversion cycle and how would a company best manipulate the cash conversion cycle to their advantage?

  Evaluating the sheet metal scrap rate in contractor proposal

We are evaluating the sheet metal scrap rate in a contractor proposal. Based on a sample of 24 parts you calculate a mean rate of 6.50% (treat as 6.50) and a standard deviation of 1.20. Calculate a 80% confidence interval to be used to support negoti..

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