2) You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1 -$150 $20 $40 $60 $80 Project 2 -825 0 0 7,000 -6,500 Project 3 20 40 60 80 -245 For which of these projects is the IRR rule reliable?
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- 23. Simms Corp. is considering a project that has the following cash flow data. The project's IRR is_______ %. Show 2 decimals in your answer. Year 0 1 2 3 Cash Flows -$1,000 $380 $475 $450Company Z is considering a project that has the following cash flow data. What is this project's IRR? Year 0 1 2 3 4 Cash Flow -2,200 700 720 740 760 Group of answer choices 9.38% 12.18% 8.53% 10.36% 11.21%The following project has cash flows as follows: Year Project A 0 -$705,000 1 $225,000 2 $421,500 3 $275,000 What is the IRR?
- ABC Inc. is considering a project that has the following cash flow data. What is the project's IRR? Year 0 1 2 3 4 Cash flows -$550 $300 $290 $280 $270Watts Co. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC: 10.00% Year 0 1 2 3 4 Cash flows -$725 $375 $400 $425 $450 Group of answer choices 25.34% 26.43% 24.25% 27.24% 23.16%A Company is attempting to select the best of three mutually exclusive projects.The initial investment and after-tax cash inflows associated with these projects are shown in thefollowing table. Cash flow Project A Project B Project CInitial Investment 100000 120,000 130,000Year 1 Cash Inflows 30000 36,500 38000Year 2 cash inflows 35000 45000 20000Year 3 cash inflows 40000 40000 42000Year 4 cash inflows 38000 35000 45000Year 5 cash inflows 20000 30000 50000 Taking into consideration that the cost of debt 7%, cost of preferred stock 12% and cost of new common stock 15%. The weight of each source of capital are long term debt 30% , preferred stock 20% and common stock equity 50%. Create a spreadsheet to answer the following questions:a) Calculate the firm‘s cost of capital (WACC) "Answered Before"b) Calculate the payback period for each project. "Answered Before"c) Calculate the net present value (NPV) of each project,d) Calculate the internal rate of return (IRR) for each project.e)…
- A Company is attempting to select the best of three mutually exclusive projects.The initial investment and after-tax cash inflows associated with these projects are shown in thefollowing table. Cash flow Project A Project B Project CInitial Investment 100000 120,000 130,000Year 1 Cash Inflows 30000 36,500 38000Year 2 cash inflows 35000 45000 20000Year 3 cash inflows 40000 40000 42000Year 4 cash inflows 38000 35000 45000Year 5 cash inflows 20000 30000 50000 Taking into consideration that the cost of debt 7%, cost of preferred stock 12% and cost of new common stock 15%. The weight of each source of capital are long term debt 30% , preferred stock 20% and common stock equity 50%. Create a spreadsheet to answer the following questions:a) Calculate the firm‘s cost of capital (WACC)b) Calculate the payback period for each project.c) Calculate the net present value (NPV) of each project,d) Calculate the internal rate of return (IRR) for each project.e) Discuss any conflict in ranking that may…Millano Company is considering a project that has the following cash flow data. What is the project's IRR? Year 0 1 2 3 Cash flows −$123,400 $36,200 $54,800 $48,100 a. 5.96% b. 6.04% c. 6.09% d. 5.93% e. 6.13%A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 01234 Project S-$1,000$869.10$260$5$10Project L-$1,000$0$250$420$831.87 The company's WACC is 8.5%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.
- Consider a project with the following cash flows: Time 0 1 2 3 4 5 CF -$5,000 $5,000 $4,000 $2,000 $1,000 -$6,000 Please round your answer to two decimal places. (e.g. 12345.67 for $12,345.67; 12.34 for 12.34%) a) To calculate the MIRR, find the modified cash flow at year 5 b) What does excel (or your calculator) say the IRR is?Barry Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 11.85% Year 0 1 2 3 4 5 CFs -$52,300 8,290 16,580 24,870 33,160 41,450 A. 21.40% B. 22.76% C. 20.71% D. 28.00% E. 18.89%Please give exact answer and excel steps Jeans LLC has a project with the following cash flows . Its required rate of return is 5 % , Year 012345 Cash Flow Project A -52,000.00 25,000.00 17,000.00 14,000.00 12,000.00 -3,000.00 What is the internal rate of retum ( IRR ) for this project ? options: a. 11.73859230479%b. 11.73962884992%c. 11.738592037872%d. 11.738591574995%e. 11.738592402818%f. 11.738672984783% Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.