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ivanzaharov [21]
3 years ago
8

A project has a cost of $150,000 and is expected to provide after-tax annual cash flows of $100,000 for two years. The firm's ma

nagement is uncomfortable with the IRR reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital for the firm of 12 percent. What is the project's MIRR?
Business
1 answer:
monitta3 years ago
8 0

Answer:

6.15%

Explanation:

cash flow 0 = -150,000

cash flow 1 = 100,000

cash flow 2 = 100,000

r = 12%

MIRR = ⁿ√(FVCF / PVCF)   - 1

  • FVCF = future value of positive cash flows discounted at r. FVCF = (100,000 / 1.12) + (100,000 / 1.12²) = 89,285.71 + 79,719.39 = 169,005.1
  • PVCF = the present value of negative cash flows = -150,000
  • n = number of periods = 2

MIRR = √(169,005.1 / -150,000) - 1 = √-1.1267 - 1 = 1.0615 - 1 = 0.0615 or 6.15%

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Answer:

Scatter Diagram.

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Today is date 0. In 10 years, you plan to retire and buy a house in Norman, OK. In terms of a time line, you will retire at the
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Answer:

$20,441.67

Explanation:

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6 0
3 years ago
Beans Coffee & Cocoa Company makes and sells a chocolate flavored coffee drink under the name "CoCoCafe." Darkroast Java, In
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<u>Full question:</u>

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This is most likely:  trademark infringement.

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Explanation:

4 0
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Ivenika [448]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The high-low method involves taking the highest level of activity and the lowest level of activity and comparing the total costs at each level.

Mountain has recorded the following for the past nine months:

January:

Number of Cavities= 375

Total cost= $5,300

February:

Number of Cavities  500

TC= 5,850

March

Number of Cavities 350

TC= 5,200

April

Number of Cavities 600

TC=6,250

May

Number of Cavities 325

TC= 5,150

June

Number of Cavities 475

TC= 5,700

July

Number of Cavities 525

TC= 6,100

August

Number of Cavities  575

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September

Number of Cavities  450

TC= 5,550

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Fixed cost= HACost - (variable cost per unit * HAUnits)= 6300 - (4.18*600)= 3792

Fixed cost= LACost - (variable cost per unit* LAUnits)= 5150 - (4.18*325)= 3792

B)  Q= 400

Total cost= 3792 + 4.18*400= $5464

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