Modified internal rate of return when evaluating projects

Assignment Help Financial Management
Reference no: EM131603347

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 12.47 percent. What is the MIRR of a project if the initial costs are $1,477,900 and the project life is estimated as 5 years? The project will produce the same after-tax cash inflows of 491,600 per year at the end of the year.

Reference no: EM131603347

Questions Cloud

What option contract is it exactly : This insurance policy is equivalent to an option contract. What option contract is it exactly?
What is yield to call of year to maturity bond : What is yield to call of 30 years to maturity bond that pays coupon rate of 17.13 percent per year, has 1 $1,000 par value and is currently priced at $1,162?
Central bank represent monetary easing-monetary tightening : Discuss whether the following actions by a central bank represent monetary easing or monetary tightening:
About shares of company x traded on stock exchange : You are given the following information about shares of Company X traded on a stock exchange:
Modified internal rate of return when evaluating projects : Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects.
Two investment projects are being considered : Two investment projects are being considered. The two projects each involve an initial investment of £3 million.
Describe what an amortization schedule is and its uses : Describe what an amortization schedule is and its uses. Explain the purpose of an amortization schedule.
Sales department and administrative department : Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department,
Decide to issue debt securities : Assuming that you decide to issue debt securities, describe the types of financial institutions that may purchase these securities?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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