What is the mirr of the project

Assignment Help Financial Management
Reference no: EM132044769

Alfa company is considering a new product that requires $300,000 intial investment and an additional $100,000 cash outflow on the last year of the project. The project will generate $120,000per year during 4 years and $50,000 on the fifth year. What is the MIRR of the project? This company uses 12 percent as WACC (reinvestment rate).

Reference no: EM132044769

Questions Cloud

What is the constructionist attitude toward reality : What is the constructionist attitude toward reality? Providing at least three (3) examples, discuss how constructionism frames social problems.
About the efficient market hypothesis : Please provide your thoughts about the efficient market hypothesis (EMH) and how the 2007-2009 recession are related.
What the main limitations of pay back method of valuation : What are the main limitations of the pay back method of valuation? Despite these limitations, the pay back method, most chief financial officers (CFOs) use it
Discuss disadvantages of looking at the case : What do you see as the advantages and disadvantages of looking at the case from only one perspective? As you learned this week, the point of the data collection
What is the mirr of the project : The project will generate $120,000per year during 4 years and $50,000 on the fifth year. What is the MIRR of the project?
What are some various cloud-based accounting : What are some various cloud-based accounting options that are currently available? What are some pros and cons from these companies
Recommend the better package for organizational decisions : Prepare and execute an extensive analysis and use the appropriate tools for assessment to recommend the better package for organizational decisions.
Discuss the multidisciplinary approach : Your ability to use the multidisciplinary approach depends on your mastery of the core set of capabilities described in the introduction to Unit 4.
What are pros and cons of financing option of floorplanning : How would you put a value on the defensive nature of this acquisition? What are the pros and cons of the financing option of floorplanning.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the ebit and eps indifference point

Calculate the EBIT/EPS indifference point.

  Different development projects for experimental drugs

Orchid Biotech Company is evaluating several different development projects for experimental drugs. Although the cash flows are difficult to forecast, the company has come up with the following estimates of the initial capital requirements and NPVs f..

  Statements concerning the kiddie-tax rules

All the following statements concerning the “kiddie-tax” rules are correct EXCEPT:

  Discuss the theories that explain dividend policy of firms

What is corporate governance and what are the features of good corporate governance? explain the theories of corporate governance. Why people don't like buying on margins or short selling stocks? What is a problem with using ratios to compare compani..

  Determine the yearly after tax cash outflows

Determine the yearly after-tax cash outflows for each firm, assuming that lease payments are made at the beginning of each year and that the firm is in the 40 percent tax bracket.

  What will your monthly payment be if you take mortgage

You are thinking of purchasing a house. What will your monthly payment be if you take this mortgage?

  Considering the acquisition of new processor

The X company is considering the acquisition of a new processor that has an estimated installed cost of $57,000.

  What is incremental annual cash flow from operations

What is the incremental annual cash flow from operations?

  Fast-growing firm recently paid a dividend of per share

A fast-growing firm recently paid a dividend of $0.55 per share. what is its value today.

  Determine the price of the bonds with remaining to maturity

Determine the price of the bonds with 15 years remaining to maturity.

  Capital structure weights on book value basis

What are the company's capital structure weights on a book value basis?

  What are arithmetic and geometric returns for stock

A stock has had returns of −26 percent, 6 percent, 34 percent, −5 percent, 28 percent, and 19 percent over the last six years. Required: What are the arithmetic and geometric returns for the stock?

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