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QUESTION 13 Sylvania Inc. is considering a project that has the following cash flow and WACC data. WACC: 11.00% Year 0 1 2 3 4
QUESTION 13
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Sylvania Inc. is considering a project that has the following cash flow and WACC data.
What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. Is this a good project to undertake or not? Explain. What is the projects NPV? Is this a good project to undertake or not? Explain. What is the projects IRR? Is this a good project to undertake or not? Explain. Did you reach to the same conclusion in each of the decision criteria above? Why or Why not?WACC:
11.00%
Year
0
1
2
3
4
Cash flows
-$1,000
$400
$360
$360
$350
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
