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AVprozaik [17]
3 years ago
10

Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? No

te that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.
WACC: 11.00%

Year 0 1 2 3

Cash flows -$800 $350 $350 $350
Business
1 answer:
SpyIntel [72]3 years ago
6 0

Answer:

the project's MIRR is 13.50 %.

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)

                                 = $350 x (1.11) ^ 2 + $350 x (1.11) ^ 1 + $350 x (1.11) ^ 0

                                 = $431.24 + $388.50 + $350.00

                                 = $1,169.74

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

(-$800)        CFj

0          CFj

0          CFj

$1,169.74  CFj

Shift IRR/Yr 113.50 %

Therefore, the MIRR is 13.50 %

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Answer:

intrinsic value of SCI’s shares is $33.28 per share

Explanation:

given data

dividend (D₀) = $1.92 per share

constant rate (g) = 4.00% per year

required return (rs ) = 10.00%

to find out

intrinsic value of SCI’s shares

solution

we know that intrinsic value is here express as

intrinsic value = current dividend × ( 1+ growth rate ) ÷ ( required rate - growth rate )    .............................1

put here value we get

intrinsic value = \frac{1.92*(1+0.04)}{0.10-0.04}

intrinsic value = 33.28

so intrinsic value of SCI’s shares is $33.28 per share

3 0
3 years ago
What are the constraints of business legislation?
Reika [66]

Answer:

A business may be constrained by a variety of licensure and other regulatory requirements, based on the industry and activities the business wants to pursue. For example, a lawyer must obtain a legal license in a particular state before he can open a practice in that state.

6 0
3 years ago
Suppose the population is 300 million​ people, the labor force is 200 million​ people, the number of people employed is 185​ mil
stiks02 [169]

Answer:

7.5%

Explanation:

The formula to compute the unemployment rate is shown below:

Unemployment rate = (Number of Unemployed workers) ÷ (Total labor force) × 100

where,

Number of people employed is 185 million

And, the labor force is 200 million

So in order to find out the unemployment rate, we subtract it by 1

= 1 - ($185 million ÷ $200 million)

= 1 - 0.925 million

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3 0
4 years ago
1. Classify the following cash flows as either operating (O), investing (I), or financing (F) activities. a) _____ Sold long-ter
Serjik [45]

Answer:

  • a) _F_ Sold long-term investments for cash.
  • b) _(O)_ Received cash payments from customers.
  • c) _(O)_ Paid cash for wages and salaries.
  • d) _(O)_ Purchased inventories for cash.
  • e) (F)_ Paid cash dividends.
  • f) _(F)_ Issued common stock for cash.
  • g) _(O)_ Received cash interest on a note.
  • h) _(O)_ Paid cash interest on outstanding notes.
  • i) _(I)_ Received cash from sale of land at a loss.
  • j) _(O)_ Paid cash for property taxes on building.

Explanation:

  • a) _F_ Sold long-term investments for cash.
  • e) (F)_ Paid cash dividends.
  • f) _(F)_ Issued common stock for cash.

Financial Decision are those what are needed to planning the new financial needs, it's necessary to decide the various scources in the capital mix of the firm.

  • b) _(O)_ Received cash payments from customers.
  • c) _(O)_ Paid cash for wages and salaries.
  • d) _(O)_ Purchased inventories for cash.
  • g) _(O)_ Received cash interest on a note.
  • h) _(O)_ Paid cash interest on outstanding notes.
  • j) _(O)_ Paid cash for property taxes on building.

The operatives decision are related to the organization of the business, which things buys and how to pay it, the managment of stock, accounts receivables / payables

  • i) _(I)_ Received cash from sale of land at a loss.

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6 0
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When Olga took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was still h
Mademuasel [1]

Complete question:

When Olga took over as facilities manager for Burlington Furniture Manufacturing, she was shocked to see the factory was still heated with a coal-fired boiler. She made an immediate decision to upgrade the heating system to something more efficient, and began to research available options. For Olga and Burlington Furniture, this represented a(n) ________ situation.']

A. generic buy

B. new buy

C. adapted buy

D. straight rebuy

E. modified rebuy

Answer:

For Olga and Burlington Furniture, this represented a new buy  situation.

Explanation:

A new purchase is the first case in which a product is purchased. It is crucial for company suppliers to use their line of goods and lots of data to help the consumer make a good decision in this sort of purchasing situation.

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