Professional Documents
Culture Documents
value:
5.00 points
Garage, Inc., has identified the following two mutually exclusive
projects:
Year Cash Flow (A)
0
$
29,700
1
15,100
2
13,000
3
9,550
4
5,450
12.value:
5.00 points
Consider the following two mutually exclusive projects:
Year Cash
0
$
1
2
3
Flow (X)
20,300
8,925
9,250
8,875
What is the crossover rate for these two projects? (Round your answer
to 2 decimal places. (e.g., 32.16)).
Crossover rate
13.value:
5.00 points
Light Sweet Petroleum, Inc., is trying to evaluate a generation project
with the following cash flows:
Year Cash Flow
0
$
38,600,000
1
62,600,000
2
11,600,000
9,800
The company uses an interest rate of 8 percent on all of its projects.
Calculate the MIRR of the project using the discounting approach
method. (Do not round intermediate calculations and round your final
answer to 2 decimal places. (e.g., 32.16))
MIRR
19.value:
5.00 points
Slow Ride Corp. is evaluating a project with the following cash flows:
Year Cash Flow
0
$
28,700
1
10,900
2
13,600
3
4
5
15,500
12,600
9,100
20.value:
5.00 points
Anderson International Limited is evaluating a project in Erewhon. The
project will create the following cash flows:
Year Cash Flow
0
$
1,260,000
1
435,000
2
500,000
3
395,000
4
350,000
All cash flows will occur in Erewhon and are expressed in dollars. In an
attempt to improve its economy, the Erewhonian government has
declared that all cash flows created by a foreign company are
blocked and must be reinvested with the government for one year.
The reinvestment rate for these funds is 3 percent.
If Anderson uses a required return of 12 percent on this project, what
are the NPV and IRR of the project? (Negative amount should be