{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-29T17:11:51-04:00", "answer_date": "2024-05-29 17:11:51", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1896485", "url": "\/study-help\/questions\/mindtap-ch-11-assignmentthe-basics-of-capital-budgeting-back-to-1896485", "question_creation_date_js": "2024-05-29T17:11:51-04:00", "question_creation_date": "May 29, 2024 05:11 PM", "meta_title": "[Solved] MINDTAP Ch 11: Assignment-The Basics of C | SolutionInn", "meta_description": "Answer of - MINDTAP Ch 11: Assignment-The Basics of Capital Budgeting Back to Assignment Attempts 1 Keep the Highest 1\/3 4. Modifi | SolutionInn", "meta_keywords": "mindtap,ch,11,assignment-,basics,capital,budgeting,back,assignment,attempts,1,highest", "question_title_h1": " MINDTAP Ch 11: Assignment-The Basics of Capital Budgeting Back to Assignment Attempts 1 Keep the Highest 1\/3 4. Modified internal rate of return (MIRR)", "question_title": " MINDTAP Ch 11: Assignment-The Basics of Capital Budgeting Back to Assignment", "question_title_for_js_snippet": "MINDTAP Ch 11 Assignment The Basics of Capital Budgeting Back to Assignment Attempts 1 Keep the Highest 1 3 4 Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR Consider the following situation Cold Goose Metal Works Inc is analyzing a project that requires an initial investment of $500,000 The project's expected cash flows are Year Year 11 Cash Flow $350,000 Year 2 150,000 Year 3 Year 4 400,000 425,000 Cold Goose Metal Works Inc 's WACC is 9 , and the project has the same risk as the firm's average project Calculate this project's modified internal rate of return (MIRR) 19 34 40020000 27) Q Se", "question_description": "\"image\"image", "transcribed_text": "MINDTAP Ch 11: Assignment-The Basics of Capital Budgeting Back to Assignment Attempts 1 Keep the Highest 1\/3 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a return equal to the IRR. Thus, the modified IRR approach makes a more reasonable assumption other than the project's IRR. Consider the following situation: Cold Goose Metal Works Inc. is analyzing a project that requires an initial investment of $500,000. The project's expected cash flows are: Year Year 11 Cash Flow $350,000 Year 2 -150,000 Year 3 Year 4 400,000 425,000 Cold Goose Metal Works Inc.'s WACC is 9%, and the project has the same risk as the firm's average project. Calculate this project's modified internal rate of return (MIRR); 19.34% 40020000%27) Q Se", "related_book": { "title": "Managerial Accounting Creating Value in a Dynamic Business Environment", "isbn": "78025664, 978-0078025662", "edition": "10th edition", "authors": "Ronald Hilton, David Platt", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/293.jpg", "uri": "\/textbooks\/managerial-accounting-creating-value-in-a-dynamic-business-environment-10th-edition-293", "see_more_uri": "" }, "free_related_book": { "isbn": "1576751260", "uri": "\/textbooks\/the-100-absolutely-unbreakable-laws-of-business-success-1st-edition-978-1576751268-268647", "name": "The 100 Absolutely Unbreakable Laws Of Business Success", "edition": "1st Edition" }, "question_posted": "2024-05-29 17:11:51", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/state-sql-query-to-satisfy-the-requirements-below-exercise-0-663434", "description": "State SQL query to satisfy the requirements below: Include the following columns: First Name Last Name Return all rows from the people table where the person's last name is between B and H. 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