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Chase, Inc. is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000. The future after-tax cash inflows from its
Chase, Inc. is considering an eight-year project that has an initial after-tax outlay or after-tax cost of $180,000. The future after-tax cash inflows from its project for years 1 through 8 are the same at $35,000. Chase uses the net present value method and has a discount rate of 12%. Will Chase accept the project? 1) Chase rejects the project because the NPV is about -$6,133. 2) Chase accepts the project because the NPV is about $6,141. 3) Chase accepts the project because the NPV is over $10,000. O4) Chase rejects the project because the NPV is below-$7,000. What is the Modified Internal Rate of Return (MIRR) of a project with the following cash flows? The discounting rate is 12%. Year Cash Flow - 1,200,000 400,000 500,000 500,000 500.000 500,000 500,000 O24.33% 23.93% 10.20% 22.00% 18.26% 21.61% 27.11%
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