Ehrmann Data Systems is considering a project that has the following cash flow - 14695

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Problem 1: Complete the table, and tell me whether we accept or reject.      
Period Project A            
CF0 -100            
CF1 50            
CF2 40            
CF3 40            
CF4 15            
RRR (Discount) 15%            
NPV              
IRR              
               
Problem 2: Complete the table, tell me which project you'd select, and why.      
Period Project A Project B          
CF0 -100 -100          
CF1 50 70          
CF2 70 75          
CF3 40 10          
RRR 10% 10%          
NPV              
IRR              
               
               
Problem 3: Find the MIRR            
Ehrmann Data Systems is considering a project that has the following cash flow and WACC data.  What is the project's MIRR?  
Do we accept or reject, and why?          
WACC:  10.00%            
Year   0 1 2 3    
Cash flows ($1,000) $450 $450 $450    
               
Problem 4:               
Nast Inc. is considering Projects S and L, whose cash flows are shown below.      
These projects are mutually exclusive, equally risky, and not repeatable.      
If the decision is made by choosing the project with the higher MIRR rather than the one with the higher NPV, how much value will be forgone?  
WACC:  8.75%            
Year   0 1 2 3 4  
CFS   ($1,100) $375 $375 $375 $375  
CFL   ($2,200) $725 $725 $725 $725  
               
               
Problem 5:               
Stern Associates is considering a project that has the following cash flow data.     
Calculate the NPV and MIRR if the RRR is 9%, and provide a recommendation on whether to accept or reject.
Year   0 1 2 3 4 5
Cash flows   ($1,100) $400 $510 ($320) $530 $340
Solution Description

 

Problem 1: Complete the table, and tell me whether we accept or reject.        
Period Project A              
CF0 -100              
CF1 50 Accept the project          
CF2 40              
CF3 40              
CF4 15              
RRR (Discount) 15%   &n
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