Duo Corporation is evaluating a project with the following cash flows: Year 0 Cash Flow -$ 15,800 1 6,900 2 8,100 3 7,700 4 5 6,500 -3,900 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. Discounting approach 21.46% Reinvestment approach 13.05% Combination approach 14.60 %

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
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Duo Corporation is evaluating a project with the following cash flows:
Year
0
Cash Flow
-$ 15,800
1
6,900
2
8,100
3
7,700
4
5
6,500
-3,900
The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.
Answer is complete but not entirely correct.
Discounting approach
21.46%
Reinvestment approach
13.05%
Combination approach
14.60 %
Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows: Year 0 Cash Flow -$ 15,800 1 6,900 2 8,100 3 7,700 4 5 6,500 -3,900 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Answer is complete but not entirely correct. Discounting approach 21.46% Reinvestment approach 13.05% Combination approach 14.60 %
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