2. Based on the cash flows shown in the chart below, compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

Project Erie

Time 0 1 2 3 4 5

Cash Flow $12,000 $2,360 $4,390 $1,520 $980 $1,250


Answers

Answer 1

Answer:

IRR = -5.19%

MIRR =  3.33%

The company should reject the project

Step-by-step explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = -$12,000

Cash flow in year 1 = $2,360

Cash flow in year 2 =  $4,390

Cash flow in year 3 = $1,520

Cash flow in year 4 = $980

Cash flow in year 5 = $1,250

IRR = 5.19%

The modified internal rate of return is a capital budgeting method used to determine the profitability of an investment. The MIRR assumes that cash inflows are reinvested at the firm's cost of capital and outflows are financed at the firm's financing cost.

MIRR = (Future value of a firm's cash inflow / present value of the firm's cash outflow)^ (1/n)  - 1

n = number of years

present value of the firm's cash outflow = $12,000

Future value of a firm's cash inflow

Future value of year 1's cash flow = $2,360 x (1.12^4) = $3,713.51

Future value of year 2's cash flow =$4,390 x (1.12^3) = $6167.63

Future value of year 3's cash flow =$1,520  x (1.12^2) = $1906.69

Future value of year 4's cash flow = $980 X 1.12 = 1097.60

Future value of year 5's cash flow = 1250

Add the future values together = $14,135.43

($14,135.43 / $12,000)^0.2 - 1 = 3.33%

The project should be rejected because the IRR is negative.  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  


Related Questions

Select ALL the correct answers.
Select all the expressions that are equivalent to the polynomial below
(3x-7)(2x+8)

Answers

Answer:

A. 4(x - 4) + 2(3x² + 3x - 20)

C. (11x² + 7x - 55)-(5x² - 3x + 1)

F. (3x² + 5x - 28) + (3x² + 5x - 28)

Step-by-step explanation:

Given:

(3x-7)(2x+8)

= 6x² + 24x - 14x - 56

=6x² + 10x - 56

A. 4(x - 4) + 2(3x² + 3x - 20)

= 4x - 16 + 6x² + 6x - 40

= 6x² + 10x - 56

B. (3x² + 5x - 28) - (2x² + 4x + 28)

= 3x² + 5x - 28 - 2x² - 4x - 28

= x² + x - 56

C. (11x² + 7x - 55)-(5x² - 3x + 1)

= 11x² + 7x - 55 - 5x² + 3x - 1

= 6x² + 10x - 56

D. 4(x - 4) - 2(3x² + 3x - 20)

= 4x - 16 - 6x² - 6x + 40

= - 6x² - 2x + 24

E. (11x² + 7x - 55)-(5x² - 3x + 2)

= 11x² + 7x - 55 - 5x² + 3x - 2

= 11x² - 5x² + 7x + 3x - 55 - 2

= 6x² + 10x - 57

F. (3x² + 5x - 28) + (3x² + 5x - 28)

= 3x² + 5x - 28 + 3x² + 5x - 28

= 6x² + 10x - 56

I have to solve for x in a diagram. it is a right triangle, cut into a smaller right triangle and a trapezoid. The cut measure 6, the height of the triangle is 12, and the known part of the base is 9. X is the rest of the base.​

Answers

the answer is in the picture

Put the following equation of a line into slope-intercept form, simplifying al
fractions.
2y - 3x = 18

Answers

Answer:

Step-by-step explanation:

Simplifying

2y + -3x = 18

Reorder the terms:

-3x + 2y = 18

Solving

-3x + 2y = 18

Solving for variable 'x'.

Move all terms containing x to the left, all other terms to the right.

Add '-2y' to each side of the equation.

-3x + 2y + -2y = 18 + -2y

Combine like terms: 2y + -2y = 0

-3x + 0 = 18 + -2y

-3x = 18 + -2y

Divide each side by '-3'.

x = -6 + 0.6666666667y

Simplifying

x = -6 + 0.6666666667y

write a numerical expression
two hundred fifty-nine mines eighty-five plus sixty-two divided by two

Answers

259-85+62÷2 is the answer

________ collect money from investors, create capital, and offer various investment options.

Fill in the blank
its 2 words

Answers

[tex]\sf\purple{Mutual \:funds}[/tex] collect money from investors, create capital, and offer various investment options.

[tex]\circ \: \: { \underline{ \boxed{ \sf{ \color{green}{Happy\:learning.}}}}}∘[/tex]

About how many times heavier is the blue whale than the rhinoceros

Answers

Answer:

1 x 10^2

Step-by-step explanation:

(2 x 10^5) / (2 x 10^3) = 1 x 10^2

will give brainliest!


Solve for x. Exclude any extraneous solutions:


4/3x+5/4=3/x

Answers

Answer:

x = 4/3

Step-by-step explanation:

[tex]\frac{4}{3x} + \frac{5}{4} = \frac{3}{x}[/tex]

take lcm of the denominator

lcm = 12x

[tex]\frac{4*4 +5*3x}{12x} = \frac{3}{x}[/tex]

[tex]\frac{16+15x}{12x} = \frac{3}{x}[/tex]

do cross multiplication

x(16 + 15x) = 3*12x

16x + 15x^2 = 36x

15x^2 = 36x - 16x

15x^2 = 20x

x^2 = 20x /15

x*x = 4x/3

x = 4x/3/x

x = 4x/3 *1/x

x = 4x/3x

x = 4/3

What is the value of m?
Om=2
Om=3
Om=15
O m=16

Answers

Answer:

m = 3

Step-by-step explanation:

5m + 1 = 3m + 7

2m = 6

m = 3

The value of m in the figure is 3

From the question, line segments GH and HK are congruent.

So, we have:

GH = HK

Substitute known values

5m + 1 = 3m + 7

Collect like terms

5m - 3m = -1 + 7

Evaluate the like terms

2m = 6

Divide both sides by 2

m = 3

Hence, the value of m in the figure is 3

Read more about quadrilaterals at:

https://brainly.com/question/5715879

the circle below is centered at (10, 4) and has a radius of 4. what is its equation?​

Answers

Answer:

The equation of the circle is

Formula :

(x- h ) ² + (y-k )² = r²

or, x²-20x +100 + y² -8y + 16 = 16

or, x² + y² -20x -8y + 100 = 0 is the required equation

what is the mean and median of 4,9,26,20,23,0,37??

Answers

Answer:

the median is 20 and the mean is 17

Step-by-step explanation:

uhmmmmmmmmmmmmmmmmmmmmm

Answers

Step-by-step explanation:

l=✓9²+4²

l=√81+16

l=✓97

can someone please help PLEASE ​

Answers

U: -2,-2
B: -5, 0
K: -5, -3
Y: -4, -3

I believe so..

find the perimeter, halla el perimetro

Answers

Answer:

28 cm

Step-by-step explanation:

The perimeter (P) is the sum of the sides

P = LE + EF + ( FG + HI + JK ) + ( GH + IJ + KL )

   = 8 + 6 + 8 + 6

   = 28 cm

The depth of snow at seven different mountain lodges is 18 inches, 20 inches, 26 inches, 22 inches, 85 inches, 18 inches, and 24 inches. Find the mean, median, and mode. Which measure is the most useful for predicting how deep the snow will be at an 8th lodge?

Answers

Answer:

a) [tex]\=x=36.4inches[/tex]

b) [tex]Median=22[/tex]

c) [tex]Mode=18[/tex]

d) [tex]The\ Mean[/tex]

Step-by-step explanation:

From the question we are told that:

Depths:

18 inches,

20 inches

26 inches

22 inches

85 inches

18 inches

24 inches

Sample size [tex]n=7[/tex]

Summation of all depths

 [tex]\sum d=18+20+26+22+85+18+24[/tex]

 [tex]\sum d=255[/tex]

a)

Generally the equation for Mean is mathematically given by

 [tex]\=x=\frac{\sum d}{n}[/tex]

 [tex]\=x=\frac{255}{7}[/tex]

 [tex]\=x=36.4inches[/tex]

b)

Generally the Median is given by the Middle Number which is

 [tex]Median=22[/tex]

c)

Generally the Mode is given by the Highest occurring Number which is

 [tex]Mode=18[/tex]

with two appearances

Therefore

d)

The measure that is the most useful for predicting how deep the snow will be at an 8th lodge is

 [tex]The Mean[/tex]

four terms in the sequence an are a3=15, a4=19, a5=23, and a6=27 which function can be used to find the nth term in the sequence

Answers

Answer:

an = 4n + 3

Step-by-step explanation:

Hyunjin has $26 and wants to buy 7 americanos for his group. Each americano costs $2.25.

How much money would he have left?

Answers

Answer:

10.25

Step-by-step explanation:

26-7(2.25)=10.25

Answer:

$10.25 would be left over

Step-by-step explanation:

Hyunjin spends 7($2.25), or $15.75, for those 7 americanos.

To find out how much money he'd have left, we subtract this $15.75 from his $26, obtaining $10.25.

Help me!
Find the area of figure.​

Answers

Answer:

9 cm²

Step-by-step explanation:

the area = ½× 3√2 × 3√2 = ½×18 = 9

Can somebody pls help I’ll give brainless

Answers

Answer:

$2

Step-by-step explanation:

bill = $10

tip = 18%

tip amount = tip % of bill

=18/100 * $10

=$180/100

=$1.8

=$2

please help me :)))))))))))))))))

Answers

Answer:

A

Step-by-step explanation:

third angle=180-(35+73)=180-108=72°

h(x)=-4x-7, when x=3
h( blank)=blank

Answers

Answer:

h(3)=19

Step-by-step explanation:

it's saying x=3 so -4×3 is -12 and -12 -7 is 19 so the answer is 19

Answer:

hope this helps

Step-by-step explanation:

T={(-9, -8), (-3, 7), (7, -7), (-9,0)}

Answers

Answer:

hey moderators can you just comment like you dont have to ban me 6 times i just want one comment and ill stopphey moderators can you just comment like you dont have to ban me 6 times i just want one comment and ill stopphey moderators can you just comment like you dont have to ban me 6 times i just want one comment and ill stopp

Step-by-step explanation:

Answer:

−18+25+(−37)

[−18+25]+(−37)

Here we will 1

st

solve square bracket

∴[−18+25]+(−37)=7+(−37)

=7−37=−30

−30 is the sum of −18,+25 and −37

Solve the system of equations by graphing.
x + y = -9
4x + y = -19

Answers

Answer:

(3 [tex]\frac{1}{3}[/tex] , 5 [tex]\frac{2}{3}[/tex] )

Step-by-step explanation:

x + y = -9    --> y = -x -9  

4x + y = -19 --> y = -4x - 19

Graph accordingly.

Choose a strategy and solve. Enter your answer using digits. You may need to use scratch paper or other objects.

Jim is helping his dad cook hamburgers for his family and friends. There are 15 people. Each person wants two hamburgers. Three people want hamburgers with cheese. Two people want hamburgers with mustard. Two people want hamburgers with ketchup. The rest want them plain. How many plain hamburgers will Jim and his dad make?

Answers

Answer They will make 30 hamburgers, 16 of them are plain

Step-by-step explanation:

30-6-4-4=16

a=v2/rSolve the formula for r.

Answers

Answer:

r =v2 /a

Step-by-step explanation:

a=v2/r

ra=v2

r =v2 /a

Answer:

r = [tex]\frac{v^2}{a}[/tex]

Step-by-step explanation:

Given

a = [tex]\frac{v^2}{r}[/tex] ( multiply both sides by r to clear the fraction )

ar = v² ( divide both sides by a )

r = [tex]\frac{v^2}{a}[/tex]

(10 x 10^-3) - (2 x 10^-6)

Simplify the problem and express the answer in scientific notation. Show your work.
Please help!!!

Answers

Answer:

9.998 x [tex]10^{-3}[/tex]

Step-by-step explanation:

ANSWER:

9998 x 10^-6

[tex]{{hope it helps}}}[/tex]

How much more would 72,300 be from 63,100?

Answers

Answer:

9,200

Step-by-step explanation:

72,300 - 63,100 = 9,200

what is the equation of a line that is perpendicular to y=1/2x+1 and passes through the point of (8,0)?​

Answers

Answer:

D. y= -2x+16

Step-by-step explanation:

the slope = -1÷½ = -2

the equation :

y-0= -2(x-8)

y = -2x+16

Find the missing angle

Answers

Answer:

25

Step-by-step explanation:

[tex]x = 90 - 65 = 25 degrees[/tex]

The two outside lines form a right angle ( represented by the square). A right angle is 90 degrees.

Subtract the known angle from 90.

X= 90-65 =25

X = 25 degrees

Help please guys! Thank youuu

Answers

Answer:

Step-by-step explanation:

12b + 1 5c = 420

b ---> number of hour baby sitting

c-----> number of hours cleaning

c = 32 hours

Plugin c = 32 in the equation,

12b + 15*32 = 420

12b + 480 = 420

Subtract 480 from both sides

12 b = 420 - 480

12b = -60

So, This is not a reasonable value.

2) b = 10 hours

Plugin b = 10 hours

12*10 + 15c = 420

120 + 15c = 420

         15c = 420 -  120

         15c = 300

Divide both sides by 15

c = 300/15

c = 20 hours

He has to do cleaning for 20 hours

Yes, It is reasonable value

PLEASE HELP BRO IM LOSING MY MIND (if u could explain how with the answer THATD be sick)

Answers

Answer:

y = (x+3)(x+2)(x+1)

Step-by-step explanation:

so how to determine that...

1) it has to be a third order equation (x^3) since it changes direction two times

2) it crosses the x axis at -1,-2,-3 so (x-1),(x-2),and (x-3) are factors

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