The Martian Corporation, a space vehicle development company, is starting a new division that will...

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Finance

The Martian Corporation, a space vehicle development company, is starting a new division that will develop the next generation launch missile engine configuration. The related net cash flows over the years are given below. Assume that the borrowing rate is ib= 12% and investment rate is ii= 25% per year.

Year CF ( 1,000 $)

0 -50,000

1 15,000

2 15,000

3 15,000

4 15,000

5 15,000

6 15,000

7 -8,000

  1. Use Excel built-in function MIRR to calculate the external rate of return. For which MARR values should the company develop the next generation launch missile engine configuration?
  2. [use excel] Calculate the external rate of return ROIC (return on invested capital). For which MARR values should the company develop the next generation launch missile engine configuration? (Include how the Goal Seek Function (Before and After) is correctly use for this question)

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