Modified internal rate of return when evaluating projects

Assignment Help Financial Management

Reference no: EM131453458

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 8.56 percent. What is the MIRR of a project if the initial costs are $2,153,500 and the project life is estimated as 10 years? The project will produce the same after-tax cash inflows of 604,100 per year at the end of the year. Round the answer to two decimal places in percentage form.

Reference no: EM131453458

Questions Cloud

Explain the interaction between carson company and risma : Explain the interaction between Carson Company and Risma? Why is Risma willing to allow Carson Company to transfer its interest rate risk to Risma?

Capm and required return : Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 4.3% rate of inflation in the future.

Planning your retirement : You are planning your retirement in 10 years. How much can you withdraw each year?

What was the company net income after taxes : What was the company’s net income after taxes if its average tax rate was 40 percent?

Modified internal rate of return when evaluating projects : Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects.

Find internal rate of return for series of future cash flow : Find the internal rate of return (IRR) for the following series of future cash flows.

Expected dividend growth for years : The expected dividend growth for years 1 to 10 is -0.9% per year. what is the current price at time year 0

Calculate how your interest payments-principal payments : Create an Excel spreadsheet and calculate how your interest payments, principal payments,

Find the irr for the company project : Deep Waters, Inc. is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company’s project.

User Account

All Pages