Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. gardial fisheries is considering a new project. as

Gardial Fisheries is considering a new project. Assume that the project's cost of capital is...

70.2K

Verified Solution

Question

Finance

Gardial Fisheries is considering a new project. Assume that the project's cost of capital is 10%. The projects expected net cash flows are as follows:

Expected Cash flows (M$)

Time

Project A

0

-390

1

-350

2

290

3

190

4

750

5

800

6

-160

7

120

8

130

9

200

10

150

a) Calculate the projects NPV, IRR, MIRR, and profitability index (PI).

b) CEO wants you to explain which measure is the best one to make an investment decision. (e.g., NPV, IRR, MIRR or PI) (1-3 sentences, you do not need to do any calculations.)

c) CEO thinks that IRR is a better measure than MIRR. Do you agree? (1-3 sentences, you do not need to do any calculations.)

d) CEO wants to know the number of years (the amount of time) required to recover Project As cost from its operations. Which measure would you use to answer the CEOs question? (1-3 sentences, you do not need to do any calculations.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

IS 2 52 The line at 434 nm in the Balmer series of the hydrogen...

Physics
Q

Question 10.1 (1 point) Suppose that the distribution of income in a certain tax bracket is...

Basic Math
Q

i want to take a 12vac input voltage and convert it to 20vdc , 12vdc+, 12vdc-,...

Electrical Engineering
Q

Chique Company purchased a building and land for 580 000 in total Individually the land...

Basic Math
Q

Find all real solutions of the equation 3s = 75.Write your answers as a list,...

Basic Math
Q

CDs cost $5.96 more than DVDs at All Bets Are Off Electronics. How muchwould 6...

Calculus
Q

A company is considering a short-term pricing decision to utilise some spare capacity. The item...

Accounting
Q

b. What are the basis and the holding period of the stock he continues to...

Accounting
Q

Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in...

Accounting
Q

The following accounts receivable report was provided by the owner of a business for the...

Accounting
Q

Jack owns and operates Puget Tours, a sight-seeing company that provides boat-tours in Washington State...

Accounting
Q

Font Page 2 of 5 Section/Time: 2 Materials Labor Equipment Project Overhead Sub-Contractor 5800 $1,000...

Finance