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Homework answers / question archive / Problem 10-03 MIRR A project has an initial cost of $68,700, expected net cash inflows of $12,000 per year for 12 years, and a cost of capital of 12%

Problem 10-03 MIRR A project has an initial cost of $68,700, expected net cash inflows of $12,000 per year for 12 years, and a cost of capital of 12%

Finance

Problem 10-03

MIRR

A project has an initial cost of $68,700, expected net cash inflows of $12,000 per year for 12 years, and a cost of capital of 12%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.

 _____%

 

Problem 10-04

Profitability Index

A project has an initial cost of $67,425, expected net cash inflows of $15,000 per year for 12 years, and a cost of capital of 8%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.

 

Problem 10-05

Payback

A project has an initial cost of $55,225, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places.

 ______ years

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MIRR = 12.74%

Profitability index (PI) = 1.68

Payback period = 3.94 years