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## Finance

 Basic Finance Corporate Finance Financial Management Financial Econometrics Portfolio Management Risk Management Public Finance Business Law & Ethics

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

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