Acrobat File Edit View E-Sign Window Help Q Wed Apr 26 5:02 PM Financial Man Textbook!.pdf Home Tools Financial Man Tex... x 54 / 475 Activity 19 LL Capital Budgeting: IRR, MIRR, PI Search tools The purpose of this assignment is to practice capital budgeting via IRR, MIRR, PI and cross-over rate Create PDF calculation. Combine Files Group Number Class meeting: Morning / Afternoon Edit PDF You are (again) asked to evaluate a new tractor project for Deere. The engineers and marketing and accounting folks have pooled their efforts to generate the following expectations about the Request E-signatures project's cash flows (FCFF). The WACC = 10%. 1=0 8 Lu Fill & Sign Export PDF CF= 30 40 50 40 50 50 30 30 20 10 -200 Organize Pages What is the IRR of the project? What is the profitability index (PI) of the project? La Send for Comments What is the project's MIRR? Comment a) Do it "brute force" by compounding each cash inflow individually (to the end of the time line) and then summing these to construct TV. b) Devise a shortcut to calculate the TV, and then continue with the usual steps to Scan & OCR calculate MIRR. Protect More Tools APR 26 stv ? IN 13 PAcrobat File Edit View E-Sign Window Help Q Wed Apr 26 5:02 PM Financial Man Textbook!.pdf Home Tools Financial Man Tex... x 55 / 475 LL Search tools Deere has an alternative investment opportunity besides manufacturing a new tractor. The alternative is to build a production facility in Chengdu China. Project FCFFs are expected to be Create PDF as follows. Combine Files 1= 0 10 Edit PDF CF= -130 40 80 105 110 115 120 130 130 135 -500 Request E-signatures What is the cross-over rate (i.e. discount) that makes Deere indifferent between the two projects (assuming they are of the same risk)? Lu Fill & Sign Export PDF Organize Pages La Send for Comments Comment O Scan & OCR [Unrelated to above]: Explain why the MIRR exceeds the IRR when a project has NPV