+ Duo Corporation is evaluating a project with the following cash flows: 2 Year Cash Flow 0 -$ 28,800 points 1 11,000 2 13,700 3 15,600 4 5 12,700 -9,200 The company uses an interest rate of 10 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the MIRR of the project using the reinvestment approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the MIRR of the project using the combination approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR 19.36 % 13.79% 13.36 × %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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+
Duo Corporation is evaluating a project with the following cash flows:
2
Year
Cash Flow
0
-$ 28,800
points
1
11,000
2
13,700
3
15,600
4
5
12,700
-9,200
The company uses an interest rate of 10 percent on all of its projects.
a. Calculate the MIRR of the project using the discounting approach.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
b. Calculate the MIRR of the project using the reinvestment approach.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
c. Calculate the MIRR of the project using the combination approach.
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.
> Answer is complete but not entirely correct.
a. Discounting approach MIRR
b. Reinvestment approach MIRR
c. Combination approach MIRR
19.36 %
13.79%
13.36 × %
Transcribed Image Text:+ Duo Corporation is evaluating a project with the following cash flows: 2 Year Cash Flow 0 -$ 28,800 points 1 11,000 2 13,700 3 15,600 4 5 12,700 -9,200 The company uses an interest rate of 10 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. Calculate the MIRR of the project using the reinvestment approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. Calculate the MIRR of the project using the combination approach. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR 19.36 % 13.79% 13.36 × %
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