What is the project IRR and MIRR

Assignment Help Financial Management
Reference no: EM132036927

NPV A project has an initial cost of $58,050, expected net cash inflows of $11,000 per year for 12 years, and a cost of capital of 12%. What is the project's NPV? (Hint: Begin by constructing a time line.) Do not round your intermediate calculations. Round your answer to the nearest cent.

IRR

A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 13%. What is the project's IRR? Round your answer to two decimal places.

MIRR

A project has an initial cost of $54,975, expected net cash inflows of $8,000 per year for 11 years, and a cost of capital of 11%. What is the project's MIRR? Round your answer to two decimal places.

Reference no: EM132036927

Questions Cloud

What is the price you should be able to receive : If you need to sell your bond, what is the price you should be able to receive?
What is the project pi : A project has an initial cost of $65,625, expected net cash inflows of $12,000 per year for 7 years, and a cost of capital of 9%. What is the project's PI?
Company will make major new announcement : An analyst who has been studying a firm called Computer Science believes the company will make a major new announcement before the end of the year.
Financing in order to keep your debt-equity ratio constant : What amount of equity and what amount of debt would you need to issue to cover the net new financing in order to keep your debt-equity ratio constant?
What is the project IRR and MIRR : A project has an initial cost of $52,125, expected net cash inflows of $12,000 per year for 8 years, and a cost of capital of 13%. What is the project's IRR?
Requires initial fixed asset investment : Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $4.428 million.
A one year treasure bill has yield : A one year Treasure bill has a yield of 5%. A bond will pay $40 at the end of year one and $1,040 at the end of year 2. If its market value is $946.50,
Equally weighted portfolio of these three stocks : What is the expected return on an equally weighted portfolio of these three stocks?
What is the current price of bond : If the yield to maturity is 8.4 percent, what is the current price of the bond?

Reviews

Write a Review

Financial Management Questions & Answers

  Is the manager correct in the given conditions

The first manager states that due to the parity conditions, the feasibility of the project will be the same whether the cash flows are hedged with a forward contract or are not hedged. Is this manager correct? Explain.

  Coefficient of variation of the risk-return relationship

Calculate the coefficient of variation of the risk-return relationship (Use the above Tables) during each decade since 1950.

  Use for debt when calculating the cost of capital

Bennington Industrial Machines issued 142,000 zero coupon bonds seven years ago. The bonds originally had 30 years to maturity with a yield to maturity of 7.2 percent. Interest rates have recently increased, and the bonds now have a yield to maturity..

  Find the unpaid balance on the debt

Quarterly payments on $12,500 at 3.3% for 6 years. Find the unpaid balance on the debt.

  Common approach to developing proforma financial statements

The most common approach to developing proforma financial statements is called the:

  What is the intrinsic value of equity and stock price

What is the firm’s value of operations? How many shares will remain after the repurchase? what is the intrinsic value of equity and stock price?

  Bond prices and interest rates are inversely related

Bond prices and interest rates are inversely related. That is, when rates go down, prices go up and vice-versa.

  How is opportunity cost concept used in capital budgeting

How is the opportunity cost concept used in the capital budgeting process? What are the potential tax consequences of selling an old asset in an asset replacement investment decision?

  What is dem boys market and book ratio

Dem Boyz has $11 billion in total assets. its balance sheet shows $1 billion in current liabilities, $3 billion in long-term debt, and $6 billion in common equity. it has 700 million in shares of common stock outstanding and its stock price is $32 pe..

  Consider exchange-traded call option contract

Consider exchange-traded call option contract to buy 500 shares with strike price of $40 and maturity in four months.The buyer of put option contract.

  What is its self-supporting growth rate

Maggie's Muffins, Inc., generated $2,000,000 in sales during 2013, and its year-end total assets were $1,400,000. Also, at year-end 2013, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..

  Depositor at melvins bank

Suppose you know that Melvin's other depositors plan to keep their money there. Should you do the same or withdraw your money and deposit it elsewhere?

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