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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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Answer: 7.67%

Explanation:

To solve this, the financial calculator will be needed

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If a corporation has only one class of stock, it is referred to as Common stock.

<h3>What is a common stock?</h3>
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<h3>What is the name of common stock?</h3>

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8 0
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Answer:

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CRM is an acronym for customer relationship management and it typically involves the process of combining strategies, techniques, practices and technology so as to effectively and efficiently manage their customer data in order to improve and enhance customer satisfaction. Therefore, these employees are saddled with the responsibility of ensuring the customer are satisfied and happy with their service at all times.

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