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Fin-305 Quiz 9

Terms in this set (10)

Blinding Light Co. has a project available with the following cash flows:
YearCash Flow
0 -$33,630
1 8,240
2 9,930
3 14,190
4 15,970
5 10,880
What is the project's IRR?
20.52
Your company has a project available with the following cash flows:
YearCash Flow
0 -$80,600
1 21,750
2 25,500
3 31,300
4 26,250
5 20,300
If the required return is 15 percent, what is the IRR?
16.69
A project has the following cash flows :
YearCash Flows
0 −$12,000
1 5,290
2 7,630
3 5,040
4 −1,580
Assuming the appropriate interest rate is 10 percent, what is the MIRR for this project using the discounting approach?
17.77
Yellow Day has a project with the following cash flows:
YearCash Flows
0 −$25,900
1 10,000
2 15,900
3 9,060
4 −3,050
What is the MIRR for this project using the reinvestment approach?The interest rate is 8 percent
9.97
Guerilla Radio Broadcasting has a project available with the following cash flows :
YearCash Flow
0 −$15,700
1 6,400
2 7,700
3 4,500
4 4,100
What is the payback period?
2.36
POD has a project with the following cash flows:
YearCash Flows
0 −$255,000
1 146,800
2 164,300
3 129,400
The required return is 9.6 percent. What is the profitability index for this project?
1.447
Living Colour Co. has a project available with the following cash flows:
YearCash Flow
0 −$33,150
1 8,330
2 10,050
3 14,400
4 16,090
5 11,060
If the required return for the project is 9.1 percent, what is the project's NPV?
12,529.66
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $40,100, $84,510, $63,330, $61,470, and $44,730, respectively. The project has an initial cost of $188,000 and the required return is 8.6 percent. What is the project's NPV?
43827.35
Mountain Frost is considering a new project with an initial cost of $255,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $21,000,$21,900, $24,600, and $17,900,respectively. What is the average accounting return?
16.75
Baker's Supply imposes a payback cutoff of 3.5 years for its international investment projects. If the company has the following two projects available, which project(s), if either, should it accept?
Year
Cash Flow (A)
Cash Flow (B)
0

-62,000

-26,000

1

7,100

15,600

2

9,800

8,400

3

28,700

1,900

4

45,900

1,100
Both project A and B are acceptable but you can select only one project
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