fu Score: 0 of 1 pt 7 of 9 (6 complete) HW Score: 55.56%, 5 of 9 pts P9-16 (similar to) Question Help $ % MIRR unequal lives. Singing Fish Fine Foods has $1,940,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $650,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $480,000 for the next six years. The appropriate rce discount rate for the deli expansion is 9.5% and the appropriate discount rate for the wine section is 8.8%. What are the MIRRs for the Singing Fish Fine upe Foods projects? What are the MIRRs when you adjust for unequal lives? Do the MIRR adjusted for unequal lives change the decision based on MIRRS? Hint: Take all cash flows to the same ending period as the longest project. bjec If the appropriate reinvestment rate for the deli expansion is 9.5%, what is the MIRR of the dell expansion? 15,16% (Round to two decimal places.) Fo: of the appropriate roinvestment rate for the wine section is 8,8%, what is the MIRR of the wine section? fur 10.82 % (Round to two decimal places.) 3% Based on the MIRR, Singing Fish Fine Foods should pick the deli project. (Select from the drop-down menu.) What is the MIRR adjusted for unequal lives of the doll expansion? ds h: 14.19% (Round to two decimal places.) unds What is the MIRR adjusted for unequal lives of the wine section? r-ta 12.39% (Round to two decimal places.) $9000 fu Score: 0 of 1 pt 7 of 9 (6 complete) HW Score: 55.56%, 5 of 9 pts P9-16 (similar to) Question Help $ % MIRR unequal lives. Singing Fish Fine Foods has $1,940,000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $650,000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $480,000 for the next six years. The appropriate rce discount rate for the deli expansion is 9.5% and the appropriate discount rate for the wine section is 8.8%. What are the MIRRs for the Singing Fish Fine upe Foods projects? What are the MIRRs when you adjust for unequal lives? Do the MIRR adjusted for unequal lives change the decision based on MIRRS? Hint: Take all cash flows to the same ending period as the longest project. bjec If the appropriate reinvestment rate for the deli expansion is 9.5%, what is the MIRR of the dell expansion? 15,16% (Round to two decimal places.) Fo: of the appropriate roinvestment rate for the wine section is 8,8%, what is the MIRR of the wine section? fur 10.82 % (Round to two decimal places.) 3% Based on the MIRR, Singing Fish Fine Foods should pick the deli project. (Select from the drop-down menu.) What is the MIRR adjusted for unequal lives of the doll expansion? ds h: 14.19% (Round to two decimal places.) unds What is the MIRR adjusted for unequal lives of the wine section? r-ta 12.39% (Round to two decimal places.) $9000
