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Exam Name: C-C4H45-2408
Vendor: SAP Certified Associate - Integration Consultant - SAP Sales and Service Cloud

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SAP Certified Associate - Integration Consultant - SAP Sales and Service Cloud
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H19-301_V3.0 Prüfungen
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HPE2-B03 Examengine
ISO-IEC-27001-Lead-Auditor-Deutsch Online Tests
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250-587 Übungsmaterialien
H21-611_V1.0 Demotesten
C_THR82_2411 Prüfungsmaterialien
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MuleSoft-Integration-Associate Fragen Und Antworten
Exam Reviews
NCP-EUC Buch
3V0-41.22 Übungsmaterialien
C_ARSUM_2404 Dumps Deutsch
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C-BW4H-214 Prüfungsübungen
2V0-31.24 Zertifikatsfragen
C_CPE_2409 Prüfungen
PL-500-German Prüfungsfrage
3V0-21.23 Deutsche
JN0-682 Prüfungen
Public-Sector-Solutions Prüfungsübungen
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JN0-664 Online Prüfung
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NEW QUESTION: 1
International Transport Company is considering building a new facility in Seattle. If the company goes ahead with the project, it will spend $2 million immediately (at t = 0) and another $2 million at the end of Year 1 (t = 1). It will then receive net cash flows of $1 million at the end of Years 2 - 5, and it expects to sell the property for $2 million at the end of Year 6. The company's cost of capital is 12 percent, and it uses the modified IRR criterion for capital budgeting decisions. Which of the following statements is most correct?
A. The project should be accepted because the modified IRR is greater than the cost of capital.
B. If the regular IRR is less than the cost of capital, then the modified IRR will be greater than the regular IRR. That situation applies in this case.
C. The regular IRR is less than the cost of capital. Under this condition, the modified IRR will also be less than the regular IRR.
D. The project should be rejected because the modified IRR is less than the regular IRR.
E. Given the data in the problem, the modified IRR criterion indicates that the project should be accepted.
However, the NPV is negative. This demonstrates that the modified IRR criterion is not always a valid decision method for projects such as this one.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
PV(Outflows) = -$2,000,000 - $2,000,000/1.12 = -$3,785,714.
TV(Inflows) = $1,000,000(FVIFA(12%,4))(1.12) + $2,000,000
= $1,000,000(4.7793)(1.12) + $2,000,000 = $7,352,816.
1 + MIRR = [7,352,816/3,785,714]

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