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schepotkina [342]
3 years ago
10

Purple Turtle Group is analyzing a project with the following cash flows: Year Cash Flow 0 -$795,000 1 $375,000 2 $-500,000 3 $6

00,000 4 $400,000 This project has cash flows. Purple Turtle Group’s WACC is 5.50%. Calculate this project’s modified internal rate of return (MIRR).
Business
1 answer:
Phantasy [73]3 years ago
6 0

Answer:

MIRR = 4.32%

Explanation:

year           cash flow

0               -$795,000

1                 $375,000

2               -$500,000

3                $600,000

4                $400,000

Since there are 2 cash outflows, the IRR calculation would result in two different answers (1 for every cash outflow), that is why we use the MIRR function in excel.

=MIRR (cash flows, finance rate, reinvestment rate)

=MIRR (-795000 to 400000, 5.5%, 5.5%)

Since we are only given one interest rate, we will use it as our finance rate and our reinvestment rate.

MIRR = 4.32%

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Answer: $18

Explanation:

Based on the information,

Sales revenue = $65 × 225 = $14625

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= $4050/225

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Answer:

                                              30-Nov                 31-Dec

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supplies                       $2,000                    $3,500

prepaid Insurance      $8,000                    $6,000

salaries payable                           $11,000                  $16,000

unearned revenue                       $3,000                    $1,500

1. Purchases of supplies in December total $4,500.

Dr Supplies expense 3,000

    Cr Supplies 3,000

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supplies expense = $6,500 - ending balance

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Dr Insurance expense 2,000

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3. $11,000 is paid to employees during December for November salaries.

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4. On November 1, a tenant pays Golden Eagle $4,500 in advance rent for the period November through January.

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8 0
3 years ago
Your friend wants to open a clothing shop. A necessary capital resource is a
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6 0
3 years ago
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Answer:

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Tactical actions, on the other hand, are flexible and involves actions taken on short term basis. Tactical actions are majorly bye-product of strategic decision.

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Other options in the question are not totally right.

7 0
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