Reference no: EM132554635

Question 1. Management of Matthew Young, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $357,598. They project that the cash flows from this investment will be $142,610 for the next seven years. If the appropriate discount rate is 14 percent, what is the IRR that Matthew Young management can expect on this project? (Do not round discount factors. Round other intermediate calculations to 0 decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.)

Question 2. Blossom Bakeries recently purchased equipment at a cost of $538,500. Management expects the equipment to generate cash flows of $310,250 in each of the next four years. The cost of capital is 13 percent. What is the MIRR for this project? (Round intermediate calculations to 3 decimals e.g. 15.123 and final answer to 1 decimal e.g. 15.2%. Do not round factor values.)

Question 3. Management of Carla Vista Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $199,550 and will generate cash flows of $104,750 over each of the next six years. If the cost of capital is 13 percent, what is the MIRR on this project? (Round intermediate calculations to 3 decimals and final answers to 1 decimal places, e.g. 15.5%. Do not round factor values.)