Question
Internal rate of return and modified internal rate of return. Lepton Industries has three potential projects, all with an initial cost of $2,300,000. Given the
Internal rate of return and modified internal rate of return. Lepton Industries has three potential projects, all with an initial cost of $2,300,000. Given the discount rate and the future cash flows of each project in the following table
| Cash Flow | Project Q | Project R | Project S | |||
| Year 1 | $600,000 | $800,000 | $1,200,000 | |||
| Year 2 | $600,000 | $800,000 | $1,000,000 | |||
| Year 3 | $600,000 | $800,000 | $800,000 | |||
| Year 4 | $600,000 | $800,000 | $600,000 | |||
| Year 5 | $600,000 | $800,000 | $400,000 | |||
| Discount rate | 7% | 12% | 15% | |||
what are the IRRs and MIRRs of the three projects for Lepton Industries?
What is the IRR for project Q?
enter your response here%
(Round to two decimal places.)
What is the MIRR for project Q?
enter your response here%
(Round to two decimal places.)
What is the IRR for project R?
enter your response here%
(Round to two decimal places.)
What is the MIRR for project R?
enter your response here%
(Round to two decimal places.)
What is the IRR for project S?
enter your response here%
(Round to two decimal places.)
What is the MIRR for project S?
enter your response here%
(Round to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Valuation Workbook
Authors: Tim Koller, Marc Goedhart, David Wessels, Jeffrey P. Lessard, McKinsey & Company
4th Edition
0471702161, 978-0471702160
