Home & More is considering a project with cash flows of −$368,000, $133,500, −$35,600, $244,700, and $258,000 for Years 0 to
4, respectively. Should this project be accepted based on the combination approach to the modified internal rate of return if both the discount rate and the reinvestment rate are 14.6 percent? Why or why not?
1 answer:
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Answer and Explanation:
According to the scenario,the computation of the given data are as follow:-
The budget is an estimation of expenses and revenue over a specific future time and it is re-evaluated and compiled on a period of time. The budget can prepare for a business, a government and a group of people, etc. It is an analysis of the income and expenditure that is useful for financial planning.
Based on this, the preparation of the flexible budget performance report is presented in attached excel spreadsheet. Kindly find it below
