Project using the discounting approach method

Assignment Help Financial Management
Reference no: EM131067491

Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 29,900 1 12,100 2 14,800 3 16,700 4 13,800 5 – 10,300 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using the discounting approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR % Calculate the MIRR of the project using the reinvestment approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR % Calculate the MIRR of the project using the combination approach method. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) MIRR %

Reference no: EM131067491

Questions Cloud

What is the npv of the new tomato glasshouse : 25300 Fundamentals of Business Finance Group Assignment. Capital Budgeting Information- Present an itemised breakdown (and the total) for each of the following: The cash flows at the start. The cash flows over the life. The cash flows at the end. Wha..
What is the effective annual interest rate charged : Home loans typically involve “points,” which are fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. What is the effective annual interest rate charged on such a loan, assuming loan repaymen..
Calculate the internal rate of return for an investment : Calculate the Internal Rate of Return (IRR) for an investment in a 400-MW power plant with an expected life of 30 years. This plant costs 1200 $/kW to build and has a heat rate of 9800 Btu/kWh. It burns a fuel that costs 1.10 $/MBtu.
What is the company fixed cost : The short-run cost function of a company is given by the equation TC=200+55q, where TC is the total cost and q is the total quantity of output, both measured in thousands. a. What is the company's fixed cost?
Project using the discounting approach method : Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 29,900 1 12,100 2 14,800 3 16,700 4 13,800 5 – 10,300 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project..
Established policy of paying an extra dividend : Bennet farm Equipment sales is in a highly cyclic business. Although the firm has a target payout ratio of 25%, its board realizes that strict adherence to the ratio would result in a fluctuating dividend and create uncertainty for the stockholders. ..
What is the profitability index for the set of cash flows : Year Cash Flow 0 –$ 17,900 1 10,200 2 9,100 3 5,600 What is the profitability index for the set of cash flows if the relevant discount rate is 9 percent? Profitability index What is the profitability index for the set of cash flows if the relevant di..
What is the value of the new firm debt : Sunburn Sunscreen has a zero coupon bond issue outstanding with a $20,000 face value that matures in one year. The current market value of the firm’s assets is $23,200. The standard deviation of the return on the firm’s assets is 27 percent per year,..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

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

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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