All categories

3 years ago

A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:

Business

1 answer:

Murrr4er [49]3 years ago

4 0

Answer: MIRR (project x ) = 3.42% , Project Y = 4.51%

Explanation:

Modified internal Rate of return

Project X

Period (n) = 4

Weighted Average Cost of equity(WACC) = 8.0%

Cash out flow = -$1000

Cash Inflows = $100 year 1 , $280 year 2 , 370 year 3 ,$700 year 4

Present Value Cash Inflows = PVCIF = Cash Inflow/(1+WACC)^n

PVCIF = 100/(1+0.08)^1 + 280/(1+0.08)^2 + 370/(1+0.08)^3 + $700/(1+0.08)^4

PVCIF = 95.592592593 + 240.05486968 + 293.71792918 + 514.5208969

Present Value of Cash inflows (PVCIF) = $1143.8862884

Present Value of Cash out flows(PVCOF) = -$1000

Modified Internal Rate of Return (MIRR) = $\sqrt[n]{\frac{PVCIF}{PVCOF} } -1$

Modified Internal Rate of Return (MIRR) = $\sqrt[4]{\frac{1143.8862884}{10000} } -1$

Modified Internal Rate of Return (MIRR) = 0.034178971

Modified Internal Rate of Return (MIRR) = 3.41789971 = 3.42%

Project Y

Period (n) = 4

Weighted Average Cost of equity(WACC) = 8.0%

Cash out flow = -$1000

Cash Inflows = $1100 year 1 , $110 year 2 , $50 year 3 ,$55 year 4

Present Value Cash Inflows = PVCIF = Cash Inflow/(1+WACC)^n

PVCIF = $1100/(1+0.08)^1 + $110/(1+0.08)^2 + $50/(1+0.08)^3 + $55/(1+0.08)^4

PVCIF = 1018.5185185 + 94.307270233 + 39.691612051 + 40.42641904

Present Value of Cash inflows (PVCIF) = $10192.9438198

Present Value of Cash out flows(PVCOF) = -$1000

Modified Internal Rate of Return (MIRR) = $\sqrt[n]{\frac{PVCIF}{PVCOF} } -1$

Modified Internal Rate of Return (MIRR) = $\sqrt[4]{\frac{1192.9438198}{10000} } -1$

Modified Internal Rate of Return (MIRR) = 0.0450931421

Modified Internal Rate of Return (MIRR) = = 4.50931421 = 4.51%

You might be interested in

Swifty Corporation reported the following year-end information: Beginning work in process inventory $1080000 Beginning raw mater

ale4655 [162]

Answer:

$27,000,000

Explanation:

Cost of Goods Manufactured = Direct Material Used + Direct Labor + Manufacturing Overhead + Opening Work In Progress - Closing Work In Progress

When Direct Material Used = Beginning raw materials inventory + Raw materials purchased + Ending raw materials inventory

Direct Material Used = 300,000 + 1,060,000 - 480,000 = 880,000

Direct Material Used = $880,000

Hence, Cost of Goods Manufactured = 880,000 + 820,000 + 820,000 + 1,080,000 - 900,000

Cost of Goods Manufactured= $27,000,000

Swifty Corporation's cost of goods manufactured for the year is $27,000,000

8 0

3 years ago

Ella makes minimum wage. Her job title is "System Assembly Supervisor." She primarily spends her workday putting together electr

timurjin [86]

Answer:

She must be paid overtime

Explanation:

Based on federal and state laws on overtime, hourly employees such as Ella who work more than 40 hours in a single workweek must be paid a higher wage for every hour past 40. overtime rate should be at least one and a half times Ella's regular pay rate.

The Fair Labor Standards Act (FLSA) states that working over 40 hours in a 168 hour period is counted as overtime

Therefore Ella is eligible for an overtime.

3 0

3 years ago

A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 122 Japanese yen 1 British pound = 2.25 Swis

andrezito [222]

Answer:

88.38

Explanation:

Given;

1 U.S. dollar = 122 Japanese yen

1 British pound = 2.25 Swiss francs

1 British pound = 1.63 U.S. dollars

Therefore,

2.25 Swiss francs = 1.63 U.S. dollars

1 US. dollar = 2.25/1.63 Swiss francs

1 US dollar = 1.38 Swiss francs

since

1 U.S. dollar = 122 Japanese yen then,

1.38 Swiss francs = 122 Japanese yen

1 Swiss francs = 122/1.38 Japanese yen

1 Swiss francs = 88.38 Japanese yen

1 Swiss franc can be used to purchase 88.38 Japanese yen.

8 0

3 years ago

List the four stages of ability development. Provide an example of a person developing a specific ability. What would each stage

docker41 [41]

Jean Piaget was a Swiss philosopher and psychologist who introduced a theory of cognitive development like Sigmund Freud Jean thought human development can be described in stages (of course leaving the sexuality part of Freud out). The stages are:
Sensorimotor. Birth through ages 18-24 months (Explorer)

Preoperational. Toddler-hood (18-24 months) through early youth (age 7)
( children learn to think abstractly, understand symbolic concepts, and use language etc.)

Concrete operational. Ages 7 to 12 (Understanding complexities)

Formal operations: Pre-adulthood through adulthood (Hypothetical, and theoretical reasoning)

4 0

3 years ago

Read 2 more answers

In the context of Herzberg's two-factor theory, ____________ are characteristics of the workplace, such as company policies, wor

Anettt [7]

Answer:

THE CORRECT OPTION IS a) hygiene factors

Explanation:

The two factor theory which was developed by Frederick Herzberg , consists of two factors on which a person's job satisfaction depends upon , one is motivation which consists of factors for satisfaction and other one hygiene , which consists of factors for dissatisfaction.

According to the question given , hygiene factors are the ones that can make people dissatisfied. This includes secondary working conditions, salary etc, every company should try to improve their hygiene factors to reduce the job dissatisfaction.

6 0

3 years ago