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AleksandrR [38]
3 years ago
6

Crystal Industries is considering an expansion project with cash flows of -$287,500, $107,500, $196,100, $104,500, and-$92,700 f

or Years 0 through 4. Should the firm proceed with the expansion based on the discounting approach to the modified internal rate of return if the discount rate is 13.4 percent? Why or why not?
A. Yes: The MIRR is 14.45 percent.
B. No: The MIRR is 9.13 percent.
C. No: The MIRR is 11.23 percent.
D. No: The MIRR is 14.45 percent.
E. Yes: The MIRR is 9.13 percent.
Business
1 answer:
GaryK [48]3 years ago
4 0

Answer:

E. Yes: The MIRR is 9.13 percent.

Explanation:

<em>The First Step is to Calculate the Terminal Value at end of year 4.  </em>

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 5 - n)

                                 = $107,500 x (1.134) ^ 3 + $196,100 x (1.134) ^ 2 + $104,500 x (1.134) ^ 1 + -$92,700 x (1.134) ^ 0  

                                 = $156,764.47 + $252,175,97 + $118,503 - $92,700  

                                 = $434,743.44

<em>The Next Step is to Calculate the MIRR using a Financial Calculator : </em>

- $287,500 CFj

0           CFj

0          CFj

0            CFj

$434,743.44   CFj

Shift IRR/Yr 9.13%

Therefore, the MIRR is 9.13% .

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a. Unintended consequences.

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4 0
4 years ago
Bat is a product of the Baldwin company which is primarily in the Nano segment, but is also sold in another segment. Baldwin sta
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Based on the information given, it should be noted that the product demand for Bat will be 797 units.

From the complete information, it was stated that Baldwin started to create its sales forecast by 14%.

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In conclusion, the correct option is 797 units.

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8 0
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The answer is an S-corporation.
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Answer:

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2. Her employees should have this attitude toward risk:

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A). High pay differentials between superiors and subordinates

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Explanation:

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Answer:

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Explanation:

In calculating interest the formula that applies is

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6 0
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Read 2 more answers
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