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Chris M.
Chris M., M.S.W. Social Work
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Hello my question for Business finance is Zellers, Inc is considering

Resolved Question:

Hello my question for Business finance is Zellers, Inc is considering two mutually exclusinve projects, A and B. Project A costs $95,000 and is expected to generate $65,000 in year one and $75,000 in year twol Project B costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. Zellars, Inc.'s required rate of return for these projects is 10%. The internal rate of return for Project B is.

Thank you,
Helen
Submitted: 5 years ago.
Category: Homework
Expert:  Chris M. replied 5 years ago.

Hello, and thanks for the question.

 

Year...Cash Flow (Project B)

0.........-120000

1............64000

2............67000

3............56000

4............45000

 

MIRR = 22.80%

 

Hope this helps!

Customer: replied 5 years ago.
Hello the choices to my answer are not 22.80%. The closest number is XXXXX%
Expert:  Chris M. replied 5 years ago.

Sorry, the answer I gave was for was for modified internal rate of return. (The way the problem was phrased in an earlier question). What are the choices you have?

 

Customer: replied 5 years ago.
Hello the choices are 29.74%, 30.79%, 35.27%, and 36.77%.
Thank you,
Helen
Expert:  Chris M. replied 5 years ago.
THIS ANSWER IS LOCKED!

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