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A. Establish economic return by calculating the IRR and modified IRR for the below projects. The financing rate is 10% and the reinvestment rate is
A. Establish economic return by calculating the IRR and modified IRR for the below projects. The financing rate is 10% and the reinvestment rate is 12%. The Number of year is 5 years Requirement: Calculate the IRR and MIRR. Then comment based on the figure. B. Consider a Furniture manufacturing company with $500,000 in depreciation and amortization and EBITDA of \$25 million. It has \$4 million in net debts and pays $250,000 as interest expense. The capital expenditure for the year is $100,000. Also, consider $420,000 to be the change in its networking capital. What are its free cash flows to equity if a tax rate of 28% is applicable? i. Calculate the Free Cash Flow to Equity (FCFE) ii. Calculate the Free Cash Flow to Firm (FCFF) C. Dr. Paritah, an analyst in a electronic Gadgets producing company, wants to calculate free cash flows to equity from the company's financial statements, an excerpt of which is provided here. Also, comment on the performance of the company visible from the required calculations. See data in table below. i. Calculate the Free Cash Flow to Equity (FCFE) ii. Calculate the Free Cash Flow to Firm (FCFF) D. Calculate the free cash flows to firm and equity from the information provided below for XYZ Company? Which is listed in New Yoke Stock exchange. i. Calculate the Free Cash Flow to Equity (FCFE) ii. Calculate the Free Cash Flow to Firm (FCFF)
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