Page 1 of 1
The Kzoo Pizza Company (KPC) plans to expand with a $308,000 project which will generate incremental after tax cash flow
Posted: Fri Jul 01, 2022 7:42 am
by answerhappygod
- The Kzoo Pizza Company Kpc Plans To Expand With A 308 000 Project Which Will Generate Incremental After Tax Cash Flow 1 (34.88 KiB) Viewed 71 times
The Kzoo Pizza
Company (KPC) plans to expand with a $308,000 project which will generate incremental after tax cash flows of $82,000 per year for the next 8 years. There will be an environmental clean-up cost (toxic pizza grease) of $110,000 in year 9. The required return is 12 percent and the reinvestment rate is 8 percent. What is the modified internal rate of return (MIRR) using the combination approach? 10.00% 11.71% 18.18% 11.18% The MIRR cannot be calculated for this problem