Which project has the higher mirr

Assignment Help Finance Basics
Reference no: EM131101154

Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below:

1544_rr.jpg

The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Which project has the higher MIRR?

Reference no: EM131101154

Questions Cloud

What are the npv and irr of this project : What are the NPV and IRR of this project? Should this project be undertaken, ignoring environmental concerns? How should environmental effects be considered when evaluating this, or any other, project? How might these effects change your decision in ..
Calculate the payback period for each case : the following expected annual cash flows'$30,000 $40,000 $50,000 $60,000 and $70,000.required:calculate the payback period for each case.
Gulf weighted average cost of capital : The Gulf Company's cost of equity is 16 percent. Its before-tax cost of debt is 13 percent, its average tax rate is 40 percent. Gulf does not have any preferred equity. If it's debt ratio is 30 percent, find Gulf's weighted average cost of capi..
Question regarding the tgif sportswear : The firm has a target debt-to-equity ratio of 40 percent. Its cost of equity is 14% and its cost of debt is 7%. The tax rate is 34%. Should TGIF Sportswear expand its T-shirt line?
Which project has the higher mirr : whose costs and cash flows are shown below:The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Which project has the higher MIRR?
What are the documentation requirements with regard to taxes : What are the documentation requirements with regard to taxes and tariffs for international trade?
Write program called nprimes which takes single integer : E15: Fundamentals of Digital Systems - Fall 2010 - HOMEWORK 10. Write a program called nprimes which takes a single integer input n on the command line. It should produce as output the first n prime numbers, one on each line
What is the role of the companies creditor arrangement act : What is the role of the Companies' Creditor Arrangement Act with respect to developing contractual arrangements that fend off insolvency?
Which should actually be selected : Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the present value of a two-period annuity

Q. Compute the present value of a two-period annuity of $1 per period if the discount rate is 10 percent,  A two-period annuity of $1 per period has a present value of $1.808.  Find the discount rate from the present value table.

  Compute the amount of the after tax income

The treasurer of Kelly Bottling Company (a corporation) currently has $100,000 invested in preferred stock yielding 8 percent. He appreciates the tax advantages of preferred stock and is considering buying $100,000 more with borrowed funds.

  Strategy-executing approaches

While companies must tailor their strategy-executing approaches to their particular situation, there are eight managerial tasks which are common elements in executing strategies.

  Tongkah return on equity is 12 and management plans to

tongkah return on equity is 12 and management plans to retain 75 of earnings for investment purposes. what will be the

  What is the net income

Their net profit margin for the year was 20 percent, while the operating profit margin was 30 percent. What is the net income, EBIT ROA, ROA, and ROE?

  Describe the procedures a company follows when it make a

describe the procedures a company follows when it make a distribution through dividend

  What is the total expected usd value of cash inflows

The average exchange rates are expected to be 1.45 USD/CHF for the Swiss franc, and 1.18 USD/EUR for the Euro. What is the total expected USD value of cash inflows for Live Co?

  Generate net income

Nielson expects to generate net income of $20 million over the next year. Currently Nielson has 8 million shares outstanding and its stock is trading at $20.00 per share. Nielson's EPS is closest to __________.

  Construct the probability distribution representing

a) Construct the probability distribution representing the different outcomes that are possible for a $1 bet on under 7.b) Construct the probability distribution representing the different outcomes that are possible for a $1 bet on over 7.

  What are the retained earn

In addition, the company had an interest expense of $4,256, and a tax rate of 43%. The company paid$9,026 as dividends. If the retained earnings is 2006 were $56,533, what are the retained earnings in 2007?

  What measure is used by stockholders to assess profitability

What measure is used by stockholders to assess the profitability of the firm? What measure is used by managers in assessing the profitability of the firm?

  Inventories of merchandising and manufacturing businesses

Of the three widely used inventory costing methods (FIFO, LIFO, and average), the FIFO method of costing inventory is based on the assumption that costs are charged against revenues in the order in which they were incurred.

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