Question
nternal 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
nternal 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, what are the IRRs and MIRRs of the three projects for Lepton Industries?
| 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 | 9% | 11% | 15% | ||||
What is the IRR for project Q? (Round to two decimal places.)
What is the MIRR for project Q? (Round to two decimal places.)
What is the IRR for project R? (Round to two decimal places.)
What is the MIRR for project R? (Round to two decimal places.)
What is the IRR for project S? (Round to two decimal places.)
What is the MIRR for project S? (Round to two decimal places.)
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Financial Reporting Financial Statement Analysis And Valuation
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
10th Edition
0357722094, 978-0357722091
