Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter2: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 14SP

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Problem 13-13 PI (LG13-6)

Compute the PI statistic for Project Z if the appropriate cost of capital is 7 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project Z
Time:	0	1	2	3	4	5
Cash flow:	–$1,400	$430	$560	$730	$380	$180

Should the project be accepted or rejected?

accepted
rejected

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Problem 13-11 MIRR (LG13-4) Compute the MIRR statistic for Project I if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project I Time: 0 1 2 3 4 Cash flow: −$11,100 $5,380 $4,230 $1,570 $2,050 Should the project be accepted or rejected? accepted rejected
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