Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Anderson International Limited is evaluating a project in Erewhon. The project will make the following cash flows:

Year

T-bill return

0

-$ 458,000

1

173,000

2

198,000

3

213,000

4

191,000

All cash flows will occur in Erewhon and are expressed in $. In an attempt to improve its economy, the Erewhonian government has confirmed that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment value for these funds is 8%. Anderson uses a 15% required return on this project.

Required:

[A] find out the NPV of the project? [Give your answer to two decimal places]

      NPV  $_________

[B] find out the IRR of the project? [Do not include the [%] sign. Give your answer to 2 decimal places]

     IRR  ______%

[C] Is the IRR you computed the MIRR of the project?

  • Yes
  • No

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M917909

Have any Question? 


Related Questions in Basic Finance

1 create an individual or family plan using the guidance

1. Create an individual or family plan using the guidance provided in FEMA's Are You Ready publication ( http://www.fema.gov/areyouready/ ). Did you find any shortfalls in this program? What did you learn by using the pu ...

1 what factors should an investor consider when trying to

1. What factors should an investor consider when trying to decide whether to dispose of a property that he has owned for several years? 2. What causes the marginal rate of return to change over time? How can the marginal ...

Wampc is examining its cash conversion cycle the company

W&C is examining its cash conversion cycle. The company expects its cost of goods sold, which equal 85% of sales, to equal $770,000 this year. W&C normally turns over inventory 25 times per year, account receivable are t ...

Problems -1 triangular arbitragesuppose you observe the

Problems - 1. Triangular Arbitrage Suppose you observe the following posted exchange rates on the Japanese yen (¥) and South African ran (R) against the US dollar: JPY - ¥97.3702/$ ZAR - R10.1453/$ The posted cross rate ...

1 how do inflationary expectations influence interest rates

1. How do inflationary expectations influence interest rates on mortgage loans? 2. How does the price level adjusted mortgage (PLAM) address the problem of uncertainty in inflationary expectations? What are some of the p ...

It is essential that you have a solid grounding in the

It is essential that you have a solid grounding in the academic theories of investing. In your final assignment, compare and contrast the academic theories of investing covered in your required readings with the philosop ...

1 using psycinfo or a similar database find five articles

1. Using PsycINFO (or a similar database), find five articles on the topic of depression in young children. Print out a copy of the Record List page. 2. Using PsycINFO (or a similar database), find research articles on b ...

1 describe a special purpose building2 compare and contrast

1. Describe a special purpose building. 2. Compare and contrast two widely different types of commercial real estate loans that you had not previously had any experience discussed in this chapter? 3. Discuss each of the ...

A five-year project has an initial fixed asset investment

A five-year project has an initial fixed asset investment of $260,000, an initial NWC investment of $20,000, and an annual OCF of -$19,000. The fixed asset is fully depreciated over the life of the project and has no sal ...

1 what is experimental contamination2 does a nonequivalent

1. What is experimental contamination? 2. Does a nonequivalent groups pretest-posttest design eliminate local history as a potential explanation of the results? Explain.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen