Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me with f and g tasks. I am not sure how to do it. C91 77 e. What is each project's MIRR at
Please help me with f and g tasks. I am not sure how to do it.
C91 77 e. What is each project's MIRR at a cost of capital of 12% ? At r=18% ? Hint: note that B is a 6-year project. 78 79 80 @ 12% cost of capital @ 18% cost of capital MIRRA= MIRRB= +2 MIRRA= MIRRB= 84 85 f. What is the regular payback period for these two projects? 86 87 Project A 88 89 Time period 90 Cash flow Cumulative cash flow (375) 13 2 3 Intermediate calculation for payback Payback using intermediate calculations 93 94 Project B 95 96 97 98 99 100 101 102 g. At a cost of capital of 12%, what is the discounted payback period for these two projects? 103 104 WACC = 12% 105 106 Project A 107 108 109 110 \begin{tabular}{|r|c|c|c|c|c|c|c|c|} \hline & & & & & & & & \\ \hline Time period & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\ \hline Cash flow & $575 & $190 & $190 & $190 & $190 & $190 & $190 & $0 \\ \hline \end{tabular} Cumulative cash flow Intermediate calculation for payback Payback using intermediate calculations Payback using PERCENTRANK Ok because cash flows follow normal pattern. 111 112 Time period Time period Cash flow Disc. cash flow Disc. cum. cash flow Intermediate calculation for payback Payback using intermediate calculations 113 Praiact R 4 WACC Build a Model Capital Budgeting Build A Model + C91 fxStep 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