Modified internal rate of return when evaluating projects

Assignment Help Financial Management

Reference no: EM131309635

Marathon Technologies, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company Is able to reinvest cash flows received from the project at an annual rate of 13.10 percent. The initial outlay for the projects is $487,600. Find the MIRR for the companys project. The project will produce the following after tax cash inflows of Year 1: $215,000 Year 2: $270,300 Year 3: $295,400 Year 4: $197,700 Round answer two decimals

Reference no: EM131309635

Questions Cloud

About the economist concept of the time value of money : Suppose your brother or sister owed you $500.00. Thinking about the economist's concept of the time value of money. Would you rather have this money repaid to you right away, in one payment, or spread out over a year in four installment payments? Wou..

Economic order quantity model in placing the orders : Cheeseburger and Taco Company purchases 15,178 boxes of cheese each year. It costs $28 to place and ship each order and $3.35 per year for each box held as inventory. The company is using Economic Order Quantity model in placing the orders. Calculate..

Ebit indifference level associated with two financing plans : EBIT-EPS Analysis) Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full ..

Projected sales for the first six months : CraftCo, Inc.' projected sales for the first six months of 2012 are given below: Jan. $500,000 April $490,000 Feb. $740,000 May $740,000 Mar. $380,000 June $610,000 40% of sales are collected in cash at time of sale, 50% are collected in the month fo..

Modified internal rate of return when evaluating projects : Marathon Technologies, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company Is able to reinvest cash flows received from the project at an annual rate of 13.10 percent. Find the MIRR for the companys project..

What is annual ordering cost of the post card inventory : Post Card Depot, an large retailer of post cards, orders 7,952,250 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it..

What can be said about interest rates in this problem : Suppose you received $1,000 and you wish to find its value in 10 years. Calculate the value of this gift if the interest rate was 8% per year, 10% per year, and 12% per year. What can be said about interest rates in this problem?

The present value of future cash flows increases : Holding all other variables constant, payment per period for an annuity due will be higher than an ordinary annuity. As the discount rate increases, the present value of future cash flows increases.

Compound annual risk premium on the real estate investment : Given a real-estate property is expected to yield 2% per quarter (nominal) with a standard deviation of the (effective) quarterly rate of 10%. How do you compute the continous compound annual risk premium on the real estate investment? Spefically, ho..

User Account

All Pages