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ycow [4]
2 years ago
8

Emann Systems is considering a project that has a cash flow as: (1,000), 450, 450, 450 for the years 0, 1, 2, 3 respectively. If

WACC: 10 %, What is the project's MIRR?
Business
1 answer:
Jet001 [13]2 years ago
4 0

Answer:

the project's MIRR is 14,20%.

Explanation:

The First Step is to Calculate the Terminal Value at end of year 3.  

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)

                                 = 450 x (1.10) ^ 2 + 450 x (1.10) ^ 1 + 450 x (1.10) ^ 0

                                 = 544.50 + 495.00 + 450.00

                                 = 1,489.50

The Next Step is to Calculate the MIRR using a Financial Calculator :

(1,000)         CFj

0          CFj

0          CFj

1,489.50  CFj

Shift IRR/Yr 14,2037 %

Therefore, the MIRR is 14,20%.

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5 0
3 years ago
A company allowed its employees to take a half hour lunch break. However, the break was uncompensated, and the employees were no
hoa [83]

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8 0
3 years ago
A restaurant offers a catering service which costs $19.50 per person with a $91.75 service charge. For parties of 70 or more peo
Mariulka [41]

Answer:

1. T=19.5n+91.75, where n<70

2. T=15n+45, where n≥70

Explanation:

1. The first linear function can be expressed as;

Total cost of catering services=(Cost per person×number of people, n)+Service charge

where;

Total cost of catering services=T

Cost per person=$19.50

Number of people=n

Service charge=$91.75

Replacing;

T=(19.5×n)+91.75

T=19.5n+91.75

The first equation: T=19.5n+91.75, where n<70

2. The second linear function can be expressed as;

Total cost of catering services=(Cost per person×number of people, n)+Service charge

where;

Total cost of catering services=T

Cost per person=$15

Number of people=n

Service charge=$45

Replacing;

T=(15×n)+45

T=15n+45

The second equation: T=15n+45, where n≥70

4 0
3 years ago
A business takes raw inputs (such as bread and cheese ), processes them (prepares them on a grill), and converts them to outputs
kipiarov [429]

Answer:

A. Internal

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4 0
3 years ago
Read 2 more answers
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