Question: QUESTION 13 Sylvania Inc. is considering a project that has the following cash flow and WACC data. WACC: 11.00% Year 0 1 2 3 4

QUESTION 13

  1. Sylvania Inc. is considering a project that has the following cash flow and WACC data.

    WACC:

    11.00%

    Year

    0

    1

    2

    3

    4

    Cash flows

    -$1,000

    $400

    $360

    $360

    $350
    What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. Is this a good project to undertake or not? Explain. What is the projects NPV? Is this a good project to undertake or not? Explain. What is the projects IRR? Is this a good project to undertake or not? Explain. Did you reach to the same conclusion in each of the decision criteria above? Why or Why not?

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