Given the following net cash flows, determine modified internal rate of return (MIRR) if the cost of capital is 10%:

Time Net Cash Flow

0 -$4,268

1 900

2 2,000

3 3,000

Group of answer choices

10.8%

12.8%

13.8%

15.8%

Flag question: Question 22

Question 220.5 pts

Valentine Company is considering investing in a new project. The project will need an initial investment of $1,200,000 and will generate $800,000 (after-tax) cash flows for each of the next three years. Calculate the NPV for the project if the cost of capital is 10%.

Group of answer choices

$689,481.59

$789,481.59

$889,481.59

$900,000

Flag question: Question 23

Question 230.4 pts

Given the following cash flows for project A: CF0 = -2,500, CF1 = +500 , CF2 = +1,500, CF3 = +2,000 and CF₄ = +5,000, calculate the payback period.

Group of answer choices

1 year.

2 years.

2.25 years.

3 years.

Flag question: Question 24

Question 240.5 pts

Given the following cash flows for project A: CF0 = -2,500, CF1 = +500 , CF2 = +1,500, CF3 = +2,000 and CF₄ = +5,000.

Assume the discount rate is 28%, calculate the discount payback period.

Group of answer choices

2 years.

2.5 years.

3.13 years

4 years.

Flag question: Question 25

Question 250.5 pts

Calculate the Profitability Index (PI) for the project with the following cash flows. The firms cost of capital is 10%.

Time Cash Flow

0 -$2,800

1 200

2 500

3 800

4 1,300

5 1,970

Group of answer choices

1.146

1.181

3,307

3,438

Flag question: Question 26

Question 260.4 pts

Calculate the Accounting Rate of Return (ARR) for the project with the following net income.

Initial Investment $3,000

Net Income in Year 1 $1,500

Net Income in Year 2 $1,800

Net Income in Year 3 $2,200

Net Income in Year 4 $2,500

Group of answer choices

33.33%

66.67%

133.33%

166.67%