What is the project modified internal rate of return

Assignment Help Finance Basics
Reference no: EM132543901

Celestial Crane Cosmetics is analyzing a project that requires an initial investment of $3,225,000. The project's expected cash flows are:

YearCash Flow

Year 1 $375,000

Year 2: -125,000

Year 3 $500,000

Year 4 $400,000

If the company's WACC is 8% and the project has the same risk as the firm's average project, what is the project's modified internal rate of return (MIRR)?

Should I accept or reject this project?

Reference no: EM132543901

Questions Cloud

What would be the expected forward one-year rate : Under the Liquidity Premium Theory, if today's three-year spot rate is 6%, today's four-year spot rate is 6.5%, the liquidity premium on a 4-year bond is 0.5%,
What is the required rate of return : A stock has a beta of 1.40, the total market return is 8.0%, and the market risk premium is 5.50%. What is the required rate of return?
Ethical considerations of executive compensation : you with an opportunity to summarize ethics in financial responsibilities and to evaluate ethical considerations of executive compensation
Calculate wahdan co operating income margin : Wahdan Co.'s ROI is 20%, current assets of $100,000, Calculate Wahdan Co.'s operating income margin, net income margin, ACP and ASP.
What is the project modified internal rate of return : If the company's WACC is 8% and the project has the same risk as the firm's average project, what is the project's modified internal rate of return (MIRR)?
How the pay and benefits practices are similar : Select one country whose pay and benefits practices are discussed in chapter 15 and compare them to pay and benefits practices used in the United States.
What is tamin cost of preferred stock : If the investors pay $100.15 per share for their investment, then what is Tamin's cost of preferred stock?
Prepare the necessary adjusting journal entries on december : Prepare the necessary adjusting journal entries on December 31, 2011.Ahmad Internet Consulting company adjusts its accounts every month.
Value line investment survey or yahoo : Use the Value Line Investment Survey or Yahoo! Finance to obtain the beta for two (2) of the below five (5) stocks:

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the amount pay for the washing machine today

The local home improvement store has a washing machine on sale for 1526, with the payment due in 2 years from today. The store is willing to discount the price.

  Do some industries have inherently better profitability

Do some industries have inherently better profitability and market value than others? Do some industries have better evolution of the stock value than others?

  What is your best estimate of firm b earnings

Dividend Displacement and Value (Medium) Two firms, A and B, which have very similar operations, have the same book value of $100 at the end of 2012.

  Calculate a cross rate to state

Calculate a cross rate to state the French quote in pounds. Use the exchange rates in Table 18.1.

  Find what is the required rate of return of the stock

If the risk-free rate is 0.0200, the return of the market is 0.1350, and the beta is 0.90, what is the required rate of return of the stock using the CAPM.

  Standard deviation of a portfolio returns

What is the standard deviation of a portfolio's returns if the mean return is 15%, the variance of returns is 184, and there are three stocks in the portfolio?

  Dividend on common stock

Medtran is a profitable company that is not paying a dividend on its common stock. James Weber, an analyst for A.G. Edwards, believes that Medtrans will begin paying a $1 each share dividend in two years and that the dividend will increase 6% yearly ..

  Number of cars crossing a bridge

A Poisson distribution was fitted to data for the number of cars crossing a bridge in forty successive 6-minute intervals of time. The sample mean was calculated from the data to be ??¯ = 2.875 and this value was used as an estimate of the populat..

  What is the project npv-rocky mountain sports

What is the project's NPV? Should Rocky Mountain accept or reject the project?

  What is the estimated beta coefficient of your company

Using Yahoo! Finance find the value of beta for your reference company. Write a two page paper discussing the following items: What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this c..

  How many weeks was anastasia loan for

At the end of their respective terms, Katy's maturity value was $5250 while Anastasia's was $6020.

  Calculate the uniform annual cost

While the period of analysis is 5 years, the alternative only provides benefits for the last 3 years. Calculate the uniform annual cost.

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