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timofeeve [1]
2 years ago
11

Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note t

hat a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC: 9%
Year 0 1 2 3
Cash flows -$1,000 $450 $450 $450

a. 13.70%
b. 13.84%
c. 13.28%
d. 17.29%
e. 14.53%
Business
1 answer:
jeka942 years ago
6 0

Answer:

the project's MIRR is 13.84 %

Explanation:

MODIFIED INTERNAL RATE OF RETURN (MIRR)

-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.

-MIRR assumes a reinvestment rate at the end of the project

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 (1.09) ^ 2 + $450 x (1.09) ^ 1 + $450 x (1.09) ^ 0

                   = $534.65 + $490.50 + $450.00

                   = $1,475.15

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

(-$1,000)          CFj

0           CFj

0           CFj

$1,475.15   CFj

Shift IRR/Yr 13.84 %

Therefore, the project's MIRR is 13.84 %.

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finlep [7]

Answer:

C) A firm's products are introduced into the market faster than its competitors' products.

Explanation:

Quick response refers to shorten the delivery time of products and services to meet  the need of customers at the right moment. This is a way to survive the competition and increase the customer satisfaction. According to this, an example of competing on quick response wil be that a firm's products are introduced into the market faster than its competitors' products as the firm will be having a better delivery time than the competition which will allow it to put the goods first in the market which will give it an advantage by being first.

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Answer:

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4 0
3 years ago
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diamong [38]

Answer:

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Explanation:

NATIONWIDE MUTUAL INSURANCE COMPANY and State Farm Mutual Automobile Insurance Company v. Barbara Walker WOOD, as administratrix of the estate of D.V.G., a minor, deceased, and K.C.T., a minor, by and through Earnest T., his father and next friend.  1111486. Decided: February 22, 2013

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The final ruling was:

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to know more about sales revenue

brainly.com/question/16232387

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