Question
Boca Center Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's
Boca Center Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected.
WACC: | 14.00% |
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Year | 0 | 1 | 2 | 3 | 4 |
Cash flows | -$1,200 | $400 | $425 | $450 | $475 |
Group of answer choices
62.88
41.25
45.84
50.93
56.59
103.95
110.02
36.65
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Question 123.13 pts
Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash Flows | -$8,750 | $2,000 | $2,025 | $2,050 | $2,075 | $2,100 |
6.84% | ||||||
5.47% | ||||||
5.69% | ||||||
5.41% | ||||||
5.25% |
Group of answer choices
6.84%
5.47%
5.69%
5.41%
5.25%
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Question 133.13 pts
O'Donnell Inc. has a required rate of return of 11 percent. The company has a project with the following cash flows:
Year | Cash Flow |
0 | -$525 |
1 | 265 |
2 | -65 |
3 | 335 |
4 | 420 |
What is the project's modified internal rate of return (MIRR)?
Group of answer choices
15.68 percent
14.36 percent
13.98 percent
18.89 percent
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