QUESTION 8 Computer Consultants Inc is considering a project that has the following cash flow and cost of capital (r) data What is the project's MIRR Note that a project's MIRR can be less than the cost of capital and even negative), in which case it will be rejected 1 2 3 $450 $450 $450 T 10 00 Year 0 Cash flows $1,000 a 9 32 b 10 35 OC 12 78 d 11 50 Oe 14 20 QUESTION 9 Farmer Co is considering Projects S and I, whose cash flows are shown below These projects are mutually exclusive, equally risky, and not repeatable If the decision is made by choosing the project with the shorter payback, some value may be forgone How much value will be lost in this instance Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost r10 25 0 1 2 3 4 Year CFS $500 $800 $0 CFL $950 S2,100 $0 $800 $400 $800 $1,000 a $24 14 b $36 42 c $29 80 Od $26 82 e $33 11 QUESTION 10 McGlothin Inc is considering a project that has the following cash flow data, What is the project's payback Year 0 1 2 3 Cash flows $1,150 $500 $500 $500 a 1 86 years b 2 07 years Oc2 53 years d 2 30 years O 2 78 years QUESTION 11 Kasper Film Co is selling off some old equipment it no longer needs because is associated project has come to an end The equipment originally cost $22,500, of which 75 has been depreciated The firm can sell the used equipment today for $6,600, and its tax rate is 10 What is the equipment's after tax salvage value for use in a capital budgeting analysis Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale $5,558 O $5,850 $6,210 $6,450 $6,772

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QUESTION 8 Computer Consultants Inc  is considering a project that has the following cash flow and cost of capital (r) data  What is the project's MIRR  Note that a project's MIRR can be less than the cost of capital and even negative), in which case it will be rejected  1 2 3 $450 $450 $450 T 10 00  Year 0 Cash flows  $1,000 a  9 32  b  10 35  OC 12 78  d  11 50  Oe  14 20  QUESTION 9 Farmer Co  is considering Projects S and I, whose cash flows are shown below  These projects are mutually exclusive, equally risky, and not repeatable  If the decision is made by choosing the project with the shorter payback, some value may be forgone  How much value will be lost in this instance  Note that under some conditions choosing projects on the basis of the shorter payback will not cause value to be lost  r10 25  0 1 2 3 4 Year CFS $500 $800 $0 CFL  $950  S2,100 $0 $800 $400 $800 $1,000 a $24 14 b  $36 42 c  $29 80 Od  $26 82 e  $33 11 QUESTION 10 McGlothin Inc  is considering a project that has the following cash flow data, What is the project's payback  Year 0 1 2 3 Cash flows  $1,150 $500 $500 $500 a  1 86 years b 2 07 years Oc2 53 years d  2 30 years O 2 78 years QUESTION 11 Kasper Film Co  is selling off some old equipment it no longer needs because is associated project has come to an end  The equipment originally cost $22,500, of which 75  has been depreciated  The firm can sell the used equipment today for $6,600, and its tax rate is 10   What is the equipment's after tax salvage value for use in a capital budgeting analysis  Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale $5,558 O $5,850 $6,210 $6,450 $6,772

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QUESTION 8 Computer Consultants Inc. is considering a project that has the following cash flow and cost

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International Macroeconomics

QUESTION 8 Computer Consultants Inc. is considering a project that has the following cash flow and cost

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International Macroeconomics

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