Given reinvestment rate of 15 per year for excess funds and


A semi-conductor company in California will significantly expand her chemical vapor deposition units in their various production sites in south-west of the United States. The cash flow for one phase of the project is shown below.

Given reinvestment rate of 15% per year for excess funds and 11 % per year for borrowing rate for extra funds, with 13 % MARR. determine:

Year

Net cash flow

0

+48000

1

+20000

2

-90000

3

+64000

4

-10000

5

-33000

a) Determine the number of possible ROR values and why?

b) Calculate the external rate of return (MIRR).

c) Is the project economically viable?

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Financial Management: Given reinvestment rate of 15 per year for excess funds and
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