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For IRR v. MIRR valuation methods: - Identify the issues. - Specific current and / or future applications and relevance to the workplace/
Calculate the two projects, NPV, IRRs, MIRR and PI, assuming a cost of capital of 12%.
What is Yonan's new required return? (Hint: First calculate the beta, then find the required return.)
Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR?
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR?
Malholtra Inc. (Ehrmann Data System) is considering a project that has the following cash flow and WACC data. What is the project's MIRR?
Based on this data, the real risk-free rate of return is:
You must make a recommendation, and you must base it on the modified IRR (MIRR). What is the MIRR of the better project.
Calculate the expected return and standard deviation for each company shares.
On the basis of these data, what is the real risk-free rate of return?
If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock?
Q1. Find the NPV, IRR and MIRR of each the projects with a cost of capital of 5%, 10%, and 12%. Q2. Determine the payback period of each project.
a. What is the required return on Okefenokee stock? b. Estimate the company cost of capital.
A series of present values of cash flows should not be summed to determine the value of a capital budgeting project.
What was its purchase price? What is this note's expected coupon-equivalent yield (IR)?
The project has the same risk as the firm's average project. Calculate the project's IRR.
The expected growth rate in dividends is 4% and the required rate of return is 12%. What is the indicated value of the common stock?
- What is this project's internal rate of return? - If the discount rate is 1%, what is this project's net present value?
Briefly describe the following three key valuation methodologies that companies use
a) What are the cash flows associated with the project? b) What is the project's Internal Rate of Return?
Define the various capital budgeting methods such as net present value (NPV), internal rate of return (IRR), et cetera, and explain how they differ.
For each project, compute the NPV, the IRR, the MIRR, and indicate the accept/reject decision.
If the decision is made by choosing the project with the higher MIRR rather than the one with the higher NPV, how much value will be forgone, if any?
Calculate (1) the payback, (2) the discounted payback, (3) the NPV, (4) the IRR, (5) the MIRR, and (6) your recommendation on the project.