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mario62 [17]
3 years ago
13

Happy Frog Inc. is analyzing a project with the following cash flows: Year Cash Flow 0 -$762,000 1 $300,000 2 $-550,000 3 $660,0

00 4 $440,000 This project has cash flows. Happy Frog Inc.’s WACC is 8.00%. Calculate this project’s modified internal rate of return (MIRR).
Business
1 answer:
Lelechka [254]3 years ago
6 0

Answer:

Happy Frog Inc.

Modified Internal Rate of Return (MIRR) = (Future value of positive cash flows / present value of negative cash flows) (1/n) – 1

= ($1,400,000 /-$1,198,700) (1/5) - 1

= -1.167932 x -0.8

= 0.934

MIRR = 9.34%

Explanation:

a) Future Value of positive cash flows:

1           $300,000

3          $660,000

4          $440,000

Total $1,400,000

b) Present value of negative cash flows:

0         -$762,000

2         -$436,700    ($550,000 x 0.794)

Total -$1,198,700

c) The Modified Internal Rate of Return for Happy Frog Inc. is greater than its Weighted Average Cost of Capital.  Therefore, the project looks very promising and should be accepted.

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Delvig [45]

Answer:

$231,000

Explanation:

With regards to the above, the total sales would be;

= Number of units Bradford inc. Is expected to sell × Per unit of ceramic vases

Given that;

Units expected to be sold = 11,000

Per unit of ceramic vases = $21

Total sales

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= $231,000

Since we were asked to get the total sales, we will simply multiply the per units sold with the units expected to be sold. Other information are not useful for the purpose of calculating the total sales.

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If golfers have increased income, what will happen in the market for golf clubs?
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Charger company's most recent balance sheet reports total assets of $28,892,000, total liabilities of $16,492,000 and total equi
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I would say that since the debt to equity ratio is the total liabilities divided by the total stockholder's equity is then $16,492,000/$12,400,000= 1.33. The debt to equity ratio is an indication of the amount of debt being used by a company to provide money to its assets relative to the amount of shareholder's equity.
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Which type of nominal decision is characterized by a fairly high degree of product involvement but a low degree of purchase invo
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Brand loyal decision is a type of nominal decision that is characterized by a fairly high degree of product involvement by a customer, but a low degree of purchase involvement.

<h3>What is Brand loyal decision?</h3>

A brand loyal decision can be defined as a type of nominal decision which involves a customer having a fairly high degree of involvement in the products offered by a producer (business organization) but a low level of involvement in its purchase.

This ultimately implies that, a brand loyal decision is characterized by a fairly high degree of product involvement with subsequent low degree of purchase involvement.

Read more on decision-making process here: brainly.com/question/1249089

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1 year ago
A company issues a​ ten-year bond at par with a coupon rate of 6.4​% paid​ semi-annually. The YTM at the beginning of the third
sladkih [1.3K]

Answer:

\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

Explanation:

The current price of the bond can be calculated by using the formula:

current  \ price \  of \  the \ bond= ( coupon \times  \dfrac{ (1- \dfrac{1}{(1+YTM)^{no \ of \ period }})}{YTM} + \dfrac{Face \ Value }{(1+YTM ) ^{no \ of \ period}}

current  \ price \  of \  the \ bond= ( \dfrac{0.064 \times \$1000}{2} \times  \dfrac{ (1- \dfrac{1}{(1+ \dfrac{0.091}{2})^{8 \times 2}})}{\dfrac{0.091}{2}} + \dfrac{\$1000 }{(1+\dfrac{0.091}{2} ) ^{8 \times 2}})

current  \ price \  of \  the \ bond=  \$32 \times $11.19 + \$490.70

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\mathbf{current  \ price \  of \  the \ bond=  \$848.78}

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