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Homework 6C

Homework 6C

Q 1.A project has an initial outlay of $2,434. It has a single cash flow at the end of year 10 of $5,622. What is the internal rate of return (IRR) for the project? Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) 2.Deep Waters, Inc. is using the internal rate of return (IRR) when evaluating projects. Find the IRR for the company’s project. The initial outlay for the project is $468,900. The project will produce the following after-tax cash inflows of Year 1: 176,300 Year 2: 100,000 Year 3: 128,300 Year 4: 123,700 Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator. 3.Find the internal rate of return (IRR) for the following series of future cash flows. The initial outlay is $502,600. Year 1: 182,800 Year 2: 168,500 Year 3: 165,600 Year 4: 148,000 Year 5: 152,300 Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) You should use Excel or financial calculator. 4.Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able to reinvest cash flows received from the project at an annual rate of 14.99 percent.The initial outlay is $452,100. Year 1: $140,400 Year 2: $124,400 Year 3: $135,700 Year 4: $151,900 Year 5: $188,900 Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box) 5.Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects. The company is able to reinvest cash flows received from the project at an annual rate of 8.76 percent. What is the MIRR of a project if the initial costs are $2,283,000 and the project life is estimated as 9 years? The project will produce the same after-tax cash inflows of 498,700 per year at the end of the year. Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

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1. 8.73 % 2. 5.22 % 3. 19.54 %