Question: HELP NEEDED ASAP* Modified Internal Rate of Return.Using a cost of capital of 14%, calculate the Modified Internal Rate of Return (MIRR) for each of
HELP NEEDED ASAP* Modified Internal Rate of Return.Using a cost of capital of 14%, calculate the Modified Internal Rate of Return (MIRR) for each of the independent projects shown in the following table and indicate whether each is acceptable
The Modified Internal Rate of Return (MIRR) ____% of project A is . (Round to 2 decimal points.)
Is project A acceptable?(Select the best answer below.)
Yes
No
The Modified Internal Rate of Return (MIRR) of project B is ____%.(Round to 2 decimal points.)
Is project B acceptable?(Select the best answer below.)
No
Yes
The Modified Internal Rate of Return (MIRR) of project C is ____%. (Round to 2 decimal points.)
Is project C acceptable?(Select the best answer below.)
Yes
No
The Modified Internal Rate of Return (MIRR) of project D is _____%. (Round to 2 decimal points.)
Is project D acceptable?(Select the best answer below.)
No
Yes
The Modified Internal Rate of Return (MIRR) of project E is _____%. (Round to 2 decimal points.)
Is project E acceptable?(Select the best answer below.)
Yes
No
| Project A | Project B | Project C | Project D | Project E | |||
| Initial investment (CF0) | $26,000 | $500,000 | $170,000 | $950,000 | $80,000 |
| |
| Year (t) | Cash inflows (CFt) | ||||||
| 1 | $4,000 | $100,000 | $20,000 | $230,000 | $0 | ||
| 2 | 4,000 | 120,000 | 19,000 | 230,000 | 0 | ||
| 3 | 4,000 | 140,000 | 18,000 | 230,000 | 0 | ||
| 4 | 4,000 | 160,000 | 17,000 | 230,000 | 20,000 | ||
| 5 | 4,000 | 180,000 | 16,000 | 230,000 | 30,000 | ||
| 6 | 4,000 | 200,000 | 15,000 | 230,000 | 0 | ||
| 7 | 4,000 | 14,000 | 230,000 | 50,000 | |||
| 8 | 4,000 | 13,000 | 230,000 | 60,000 | |||
| 9 | 4,000 | 12,000 | 70,000 | ||||
| 10 | 4,000 | 11,000 | |||||
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
