Compute the MIRR Statistic for Project J and Advise Whether

question 11

Multiple Choice

Compute the MIRR statistic for Project J and advise whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.Project J $$\begin{array} { | r | l | l | l | l | l | l | } \hline \text { Time } & 0 & 1 & 2 & 3 & 4 & 5 \\\hline \text { Cash Flow } & - \$ 1,000 & \$ 300 & \$ 1,480 & - \$ 500 & \$ 300 & - \$ 100 \\\hline\end{array}$$

• A)The project's MIRR is 14.77 percent and the project should be accepted.
• B)The project's MIRR is 9.29 percent and the project should be rejected.
• C)The project's MIRR is 13.76 percent and the project should be accepted.
• D)The project's MIRR is 15.31 percent and the project should be accepteD. \[\begin{array} { | l | l | l | l | l | l | l | }
• \hline \text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \\
• \hline \text { Cash Flow } & - \$ 1,000 & \$ 300 & \$ 1,480 & - \$ 500 & \$ 300 & - \$ 100 \\
• \hline \begin{array} { l }
• \text { Present } \\
• \text { Value (If } \\
• \text { Negative) }
• \end{array} & - \$ 1,000 & & & - 375.66 & & - 62.09 \\
• \hline \text { Sum of PV } & - \$ 1,437.75 & & & & & \\
• \hline \begin{array} { l }
• \text { Future } \\
• \text { Value (If } \\
• \text { Positive) }
• \end{array} & & 439.23 & 1969.88 & & 330.00 & \\
• \hline \text { Sum of FV } & & & & & & \$ 2.739 .11 \\
• \hline \begin{array} { l }
• \text { Modified } \\
• \text { CFs }
• \end{array} & - \$ 1,437.75 & & & & & \$ 2.739 .11 \\
• \hline
• \end{array}\]

Distinguish between different means and ends in the context of organizational behavior and power.

Identify critical factors affecting organizational effectiveness and the role of departments.

Understand the physical, cognitive, and emotional changes that occur during adulthood and late adulthood.

Recognize the impact of social factors and life transitions on adult development.

---

Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Generally Accepted Accounting Principles

A set of accounting standards, principles, and procedures that companies use to compile their financial statements.

Liability-Revenue Account Relationship

The connection between liabilities and revenues, typically involving situations where revenue is earned as liabilities are settled.

Unearned Rent Revenue

A liability account representing the advance payment of rent by tenants that has yet to be earned by the property owner.