Given the net cash flow in the table, calculate:a) IRR15%b) EROR by MIRR method, give ii=() and ib=18%c) ROIC given ii=15%d) based on these calculations, which one should the company choose to useto earn the highest profit? (To maximize the investment return)الجدول كان.Year 0 2000Year 1-1600Year2> 200Year3>-1600Year4> 4002000200Da) IRR-160021600५100FUND 400-1600 (F/p, 1, 1) + 200 (F) i°. 2) - 1600 (/, 1th, 8) + 2000 (Fips 4)=0calculationInterpolation: 1=17 FW=-13-02617.2%i=18FW= 39-18432-13-02-522168289-18X=0.750452-211=17-2496%b) 1-Plo for all (-) Cash Flow it. 18Po=-1600 (18%, 1) - 16d PrF, 18% 13) = -3984.7882- Fle for all (+) cocn Plow i;=15FW4 = 400 + 200 (F/p, 15%, 2) + 2000 (F, 15%, 4) = 4162-51253. FW=o, FindiFW=0=4162-5125-3984.788 (F/p, 1, 4) >= 1.096%C- ROIC:FW₂ = 2000FWI = 2000 (F/p, 15%,1)-1600=700FW2 = 700 (F/P. 15/11) +200 = 1005FW31005(F/P, 15%,1) - 1600=444.25FWY = -44425 (F/p, 1, 1) + 400 = 0.d. The compony should be used MIRRi = -9.96%

Step 1: Calculate IRRList the cash flows:Year 0: -2000Year 1: -1600Year 2: 200Year 3: -1600Year 4:…

Answered: Given the net cash flow in the table,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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