D Question 19 5 pts Ingram Electric is considering a project

D Question 19 5 pts Ingram Electric is considering a project with an initial cash outflow of $800,000. This project is expected to have cash inflows of $350,000 per year în years 1, 2, and 3. The company has a WACC of 645% which is used as its reinvestment rate. What is the project\'s modified internal rate of returr (MIRR)? Your answer should be between 11.00 and 13.72, rounded to 2 decimal places, with no special characters D Question 20 5 pts Arrow Electronics is considering Projects S and L, which are mutually exclusive, equally risky and not repeatable. Project S has an initial cost of $1 million and cash inflows of $370,000 for 4 years, while Project L has an initial cost of $2 million and cash inflows of $720,000 for 4 years. The CEO wants to use the IRR criterion, while the CFO favors the NPV method, using a WACC of 8.92%. You were hired to advise the firm on the best procedure. If the wrong 5 6 7 8 0

Solution

19 .

Use MIRR function in Excel

MIRR = 11.84%

20.  

Cash flows	Year
(800.000)	0
350.000	1
350.000	2
350.000	3