Same after-tax cash inflows

Assignment Help Finance Basics
Reference no: EM131332355

Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company is able to reinvest cash flows received from the project at an annual rate of 10.36 percent. What is the MIRR of a project if the initial costs are $1,698,600 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of 562,800 per year at the end of the year.

Reference no: EM131332355

Questions Cloud

Firm using discount rate : Consider the following projects, for a firm using a discount rate of 10%: Project NPV IRR A $200,000 10.2% B $(200,001) 11% C $1 10% D $(235,000) 9% If the projects are independent, which, if any, project(s) should the firm accept?
Issued nonconvertible preferred stock : Potter's Violin Co. has just issued nonconvertible preferred stock with a par value of $100 and an annual dividend rate of 18.66 percent. The preferred stock is currently selling for $119.42 per share. which rate of return does the investor expect..
Show that the given game has a unique nash equilibrium : Show that the following game has a unique Nash equilibrium, and in particular a unique extensive-form perfect equilibrium and a unique strategic-form perfect equilibrium.
Proposed fee structure with a local health plan : Memorial Hospital is trying to calculate its expected payments from a proposed fee structure with a local health plan. The health plan projects its hospital budget at 465 patient days per 1,000 members, with a payment rate of $1,000 per patient day. ..
Same after-tax cash inflows : What is the MIRR of a project if the initial costs are $1,698,600 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of 562,800 per year at the end of the year.
Weighted average cost of capitol : The Black Bird Company plans an expansion. The expansion is to be financed by selling $53 million in new debt and $50 million in common stock. The before-tax required rate of return on debt is 7.01% and the required rate of return on equity is 16...
About the cash flow and wacc data : Hindelang Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 12.25% Ye..
What is the stockprice today : Because Vigorous Growth Company retains and invests all of its earnings (in positive NPVprojects!), the firm currently pays no dividends. Investors believe that the firm will pay itsfirst dividend (of $12 per share) 20 years from today. Investors ..
Company weighted average cost of capital : Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.

Reviews

Write a Review

Finance Basics Questions & Answers

  What would you do if you decided to invest the money

Suppose you win the lottery. What would you do if you decided to invest the money in the market? How would you diversify your portfolio and why?

  A pure discount bond and a bond that trades at a discount

If issuers successfully sell pure discount bonds in the market, investors must want them. Can you explain why any bond purchaser might prefer to purchase a pure discount bond rather than a bond that pays interest?

  Accept or else reject the project under npv

Accept or else reject the Project under NPV and Profitability Index and What is the net present value of a project with the following cash flows and a required return of 12%

  What is the implied growth rate of sales for triad

Sales for Triad Inc. have grown from $2 million to $8.092 million in 10 years. What is the implied growth rate of sales for Triad?

  How many extra shares being recognized in the diluted eps

Using the treasury stock method, the options would result in how many extra shares being recognized in the diluted EPS calculation.

  Determine external financing needed

The most recent financial statements for Dockett, Inc., are shown here (Suppose no income taxes):

  Compute the required rate of return on fbc stock

Compute the required rate of return on FBC stock.

  Find the forward rate

If you were to buy 10 Sept 2011 Euribor futures at 99.35 & sell them at 99.40 three days later, how much money would you have made or lost? Every future has a tick value of €25

  You have 4629802 in a brokerage account and you plan to

you have 46298.02 in a brokerage account and you plan to deposit an additional 5500 at the end of every future year

  Calculating value per share of company stock

Thomas Brothers is expected to pay a $.50 each share dividend at the end of the year. The dividend is expected to increase at a constant rate of 7% a year.

  Expected dividend per share

The dividend is expected to grow 11% a year for the next 3 years and then at 4% a year thereafter. What is the expected dividend per share for each of the next 5 years? Round your answers to two decimal places

  Confidence coefficient associate with interval

A random sample of size 25 was taken from a normal population with σ2 = 6. A confidence interval for the mean was given as (5.37, 7.37). What is the confidence coefficient associate with this interval?

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