For the nonconventional net cash flow shown, determine the external rate of return using the MIRR method

Question:

For the nonconventional net cash flow shown, determine the external rate of return using the MIRR method at a borrowing rate of 10% per year and an investment rate of

(a) 15% per year, and

(b) 30% per year. See Problem 7.60 for a thorough spreadsheet based analysis of this series.

Data from problem 7.60

3 Year Net Cash Flow, $1000| +15,000 -5000 +3000 –7000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

See More Books

Question Posted: Dec 12, 2018 10:37 AM

See More Questions

For the nonconventional net cash flow series experienced over the first 3 years of operation by Viking, Inc., an Internet-based sports boat and ski equipment sales company, perform a thorough ROR...
For the nonconventional net cash flow series shown, the external rate of return per year using the MIRR method, with an investment rate of 20% per year and a borrowing rate of 8% per year, is closest...
Swagelok Co. of Solon, Ohio, makes variable area flow meters (VAFs) that measure liquid and gas flow rates by means of a tapered tube and float. If tooling and setup costs were $400,000 in year 0 and...
A house girl added 20g of sodium chloride (NaCl) to 80g of water (atomic masses are Na=23amu, Cl=35.5amu). Calculate a)Percent(w/w) of NaCl b)Mole fraction of NaCl
The 2016 annual report of Best Buy Co., Inc. reported profitable operations for the most recent three years. However, the company suffered a net loss in 2012. Best Buy reported the following for the...
Relation of elements to financial statements Required Identify whether each of the following items would appear on the income statement (IS), statement of changes in stockholders equity (SE), balance...
Haupt Consulting, Inc., completed the following transactions during the first half of December, 2010: Requirements 1. Open T-accounts in the ledger: Cash, Accounts receivable, Supplies, Equipment,...
iii Columns Rows Value Operating Cash Flow: Discount Goods vs. Big Store 30K 25K 20K 15K 10K SK OK Store Measure Values 31,530 27,389 28,564 23,257 Measure Names Big Store 25,591 24,255 23,643 26,249...
A freight train with a mass of 100,000 (kg) accelerates from 0 to 4 (m/s) in 20 (s). If the force of friction on the train is 50,000 (N), what is the force from the engine pulling the train?
Analyze the events chronologically, one transaction at a time, beginning with the transaction on May 1st For each transaction that follows the May 1st transaction, calculate the balance in each...
A new advertising campaign by a company that manufactures products that apply biometric, surveillance, and satellite technologies resulted in the cash flows shown. Calculate unique external rate of...
The Martian Corporation, a space vehicle development company, is starting a new division that will develop the next generation launch missile engine configuration. Use a hand application of the MIRR...
What were SuperDOT and SOES, and what were they designed to do?
A bond has 10 years to maturity, a coupon rate of 5%(coupons paid semi-annually), a yield to maturity of 6%, and a face value of 1000. Calculate the bonds (Macaulay) duration. Enter your answer as an...
Who are your clients, what marketing mode ( s ) ( advertising , sales promotion etc ) are you going to use to get to them?
Glassons has $1,250 in total earnings with 750 shares outstanding at a market price per share of $42. Country Road has $740 in total earnings with 220 shares outstanding at $18 per share. Assume...
Use the graph to answer the question that follows. (2 points) What would be the area of this firm's economic profits or economic losses? P1, M, G, P3 in profits P, M, G, P; in losses P, M, N, P in...
Many industrial storage tanks are spherical and painted white to reflect the sun's rays. If such a storage tank had a defect in the paint and began to heat up it could explode if the temperature...
Express each mixed number as an improper fraction. 8.
Suppose that A is an m n matrix with linearly independent columns and the linear system LS(A, b) is consistent. Show that this system has a unique solution.
In the annual worth method of comparing alternatives that have different lives, why do you calculate the AW of the alternatives over their respective life cycles instead of over the least common...
Multiple Choice Questions 1. All of the following are fundamental assumptions for the annual worth method of analysis except: (a) The alternatives will be needed for only one life cycle. (b) The...
Multiple Choice Questions 1. Of the following three relations, the correct one or ones to calculate the annual worth of vendor 1 cash flow estimates is ( note : all dollar values are in thousands):...
Read the following TSA from this page https://enforcement.trade.gov/tomato/2013-agreement/Mex-Tomatoes-Export-Mechanism-052313.pdf?...
Account is a domestic growth portfolio. The current holdings are primarily US exchange-traded stocks and bonds. To remain in compliance, the total portfolio may only invest up to a maximum of 5% in...
11. The graph of f(x) = x-2. [x] for -2 x 3 appears below. 3 + 1 (a) Isf a one-to-one function? (b) Is f an increasing function? (c) Isf a decreasing function? 2 3

For the nonconventional net cash flow shown, determine the external rate of return using the MIRR method

Question:

3 Year Net Cash Flow, $1000| +15,000 -5000 +3000 –7000

Step by Step Answer:

a By hand with i b 10 and i i 15 PW 0 7000 5000PF103 7000 5000075...View the full answer

Engineering Economy

Students also viewed these Business questions