Determine the average modified internal rate return mirr

In previous years the company ABC had limited its investment plans because of high capital costs facing. Recently the cost of capital appears to have reduced the company's management is considering seriously to consider the implementation of two major investment projects. Suppose you are the assistant chief financial officer of ABC and we have commissioned to calculate the cost of capital. The finance manager has supplied you with the following items, which assumes that it can be very helpful for making the work you have been assigned.

1. The company's tax rate is 25%

To help you in your work, the CFO, you have been asked to answer the following questions:

A. (1) What is the cost of the ABC bond market and what the cost of borrowed funds to be included in the weighted average cost of capital of ABC?

Q. What is the estimated cost of ordinary share capital of the ABC, using the approach of reward for risk.

F. What is your final estimate for the cost of ordinary share capital of the ABC?

A. (1) What is the payback period? To find the payback period of the programs X and Y

(2) According to the payback period criteria which program or programs should be accepted if the maximum payback period is accepted by the ABC is 2.5 years;. What would your answer to the previous question if programs X and Y were mutually exclusive?

(2) According to the criterion of efficiency indicator which program or programs should be accepted if programs X and Y are independent? If mutually exclusive?

D. (1) To determine the average Internal Rate of Return (IRR). What is the IRR of each project?

G. Determine the average Modified Internal Rate of Return (MIRR). To calculate the modified internal rate of return of X and Y when the cost of capital is equal to the weighted average cost of capital of ABC who previously appreciated (the question VII of the first topic ) and also when it is 5%.