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Slow Ride Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 $12,800 1 6,200 2 6,800 3 6,300 4 5,200

Slow Ride Corp. is evaluating a project with the following cash flows:

Year Cash Flow
0 $12,800
1 6,200
2 6,800
3 6,300
4 5,200
5 4,400

The company uses a 11 percent discount rate and an 10 percent reinvestment rate on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates.

Required:
(a) MIRR using the discounting approach.(Do not round your intermediate calculations.)
(Click to select) 22.64% 23.31% 21.77% 21.09% 22.2%

(b) MIRR using the reinvestment approach.(Do not round your intermediate calculations.)
(Click to select) 15.35% 16.97% 16.48% 16.16% 16.82%

(c) MIRR using the combination approach.(Do not round your intermediate calculations.)
(Click to select) 14.58% 15.66% 16.12% 15.73% 15.35%

AND

A project has the following estimated data: price = $85 per unit; variable costs = $31.45 per unit; fixed costs = $6,200; required return = 9 percent; initial investment = $9,000; life = five years. Ignore the effect of taxes.

(c) What is the financial break-even quantity? (Do not round your intermediate calculations.)
(Click to select)175 143 127 159 191
(d)

What is the degree of operating leverage at the financial break-even level of output? (Do not round your intermediate calculations.)

(Click to select) 1.1672 1.7852 1.5792 3.6795 0.9612

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