subject
Business, 18.03.2020 18:32 Bunnybear3384

MIRR unequal lives. Singing Fish Fine Foods has $1 comma 980 comma 000 for capital investments this year and is considering two potential projects for the funds. Project 1 is updating the store's deli section for additional food service. The estimated after-tax cash flow of this project is $560 comma 000 per year for the next five years. Project 2 is updating the store's wine section. The estimated annual after-tax cash flow for this project is $480 comma 000 for the next six years. The appropriate discount rate for the deli expansion is 9.7% and the appropriate discount rate for the wine section is 8.8%. What are the MIRRs for the Singing Fish Fine Foods projects? What are the MIRRs when you adjust for unequal lives? Do the MIRR adjusted for unequal lives change the decision based on MIRRs? Hint: Take all cash flows to the same ending period as the longest project. If the appropriate reinvestment rate for the deli expansion is 9.7%, what is the MIRR of the deli expansion? 11.41% (Round to two decimal places.) If the appropriate reinvestment rate for the wine section is 8.8%, what is the MIRR of the wine section? 10.44% (Round to two decimal places.) Based on the MIRR, Singing Fish Fine Foods should pick the deli project. (Select from the drop-down menu.) What is the MIRR adjusted for unequal lives of the deli expansion?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:40
Alocation analysis has been narrowed down to two locations, akron and boston. the main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. the scores for raw materials, transportation, and labor are for akron 60, 80, and 70, respectively; for boston 70, 50, and 90, respectively. given this information and a minimum acceptable composite score of 75, we can say that the manager should:
Answers: 3
question
Business, 22.06.2019 08:40
During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100
Answers: 2
question
Business, 22.06.2019 18:50
Plastic and steel are substitutes in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect: a) the demand curve for plastic to shift to the left. b) the price of steel to fall. c) the demand curve for steel to shift to the left d) nothing to happen to steel because it is only a substitute for plastic. e) the demand curve for steel to shift to the right
Answers: 3
question
Business, 22.06.2019 19:00
For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jillā€™s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jillā€™s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jillā€™s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. kenā€™s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period kenā€™s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. kenā€™s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?
Answers: 1
You know the right answer?
MIRR unequal lives. Singing Fish Fine Foods has $1 comma 980 comma 000 for capital investments this...
Questions
question
Mathematics, 13.07.2019 09:00
question
Computers and Technology, 13.07.2019 09:00