Modified internal rate of return

Assignment Help Financial Management
Reference no: EM131556181

Tall Trees, 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 13.51 percent. What is the MIRR of a project if the initial costs are $1,857,600 and the project life is estimated as 7 years? The project will produce the same after-tax cash inflows of 496,500 per year at the end of the year.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Reference no: EM131556181

Questions Cloud

How mobile communications changed interpersonal relationship : How have mobile communications changed interpersonal relationships? E-Mail: a blessing, a curse, or something in between
What are some of these treatments drawbacks : Discuss some treatments and/or cures for drug and alcohol addiction. What are some of these treatments' drawbacks
Prepare bond amortization schedule : Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization.
What is the net present value of the project : What is the net present value (NPV) of the project if the company’s cost of capital is 10.97 percent?
Modified internal rate of return : Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects.
How a diffusion process relates to an adoption process : Identify several factors that relate to a product's success and discuss why these factors are positively or negatively associated with new product development.
The counter argument how dividends can reduce value : Explain how dividends can increase value and the counter argument how dividends can reduce value.
What is premium for growth on the stock : If investors expect a return of 15% per year on the stock, what is the premium for growth on the stock?
Should we condemn a society for this practice : Human sacrifice was an integral feature of Aztec society. How do we evaluate this practice? Should we condemn a society for this practice

Reviews

Write a Review

Financial Management Questions & Answers

  Social responsibility requirement of domestic banks

Discusses the social responsibility requirement of domestic banks.

  Restructuring reduce the company vulnerability to takeover

Might this restructuring reduce the company's vulnerability to a takeover? If so, how?

  Principles of the risk-return and portfolio managament

In fact, marketing department was forced to go slow as factory could not deliver enough capacity. Using principles of the Risk, Return and Portfolio Managament

  A pension plan is obligated to make disbursements

A pension plan is obligated to make disbursements of $1 million, $2 million, $5 million and $1 million at the end of each of the next four years, respectively. Find the duration of the plan’s obligations if interest rates are flat at 10% annually

  What is the projected addition to fixed assets

2012 Income Statement Net sales $ 7,600 Cost of goods sold 6,650 Depreciation 210 Earnings before interest and taxes $ 740 Interest paid 55 Taxable Income $ 685 Taxes 230 Net income $ 455 Dividends $ 194 Major Manuscripts, Inc. 2012 Balance Sheet 201..

  Community banks continue to play strong role in economy

Community banks continue to play a strong role in the economy because:

  College tuition has been rising at a rate

College tuition has been rising at a rate of 7% per year. Currently the average tuition of a state college is $10,600 per year. Andrea's son Trevor will begin college in 9 years. Andrea's portfolio is making 2% annually. How much does Andrea need to ..

  Promote safe working conditions

"Promote conditions that empower people's capacity to meet their basic human needs (for example, safe working conditions and sufficient pay to live on)." Other examples include off shoring and outsourcing operations that promote safe working condi..

  Prepare the income tax expense section of income statement

prepare the income tax expense section of the income statement for 2014, beginning with the line income before income taxes

  What is the difference in the current prices of these bonds

Two bonds have a coupon rate of 6.5 percent, semi-annual payments, face values of $1,000, and yields to maturity of 7.1 percent. Bond S matures in 6 years and bond L matures in 12 years. What is the difference in the current prices of these bonds?

  What is the tax on a 100,000 home

If property tax on a $200,000 home is 3,090. What is the tax on a 100,000 home?

  Debt outstanding and total market value

Music City, Inc., has no debt outstanding and a total market value of $150,000. Earnings before interest and taxes, EBIT, are projected to be $32,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 10..

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