Duo Corporation is evaluating a project with the following cash flows:Year0PO12345Cash Flow-$ 29,30011,50014,20016,10013,200-9,700The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent onall of its projects.a. Calculate the MIRR of the project using the discounting approach. (Do not roundIntermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)b. Calculate the MIRR of the project using the reinvestment approach. (Do not roundIntermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)c. Calculate the MIRR of the project using the combination approach. (Do not roundIntermediate calculations and enter your answer as a percent rounded to 2decimal places, e.g., 32.16.)a. Discounting approach MIRRb. Reinvestment approach MIRRc. Combination approach MIRR%%%

Step 1:Cash Flow Year 0(CF0) =-$29300Cash Flow Year 1(CF1) =$11500Cash Flow Year 2(CF2) =$142000Cash…

Answered: Duo Corporation is evaluating a project…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects. Year 0 Cash Flow -$ 16,100 1 2 12345 7,200 8,400 3 8,000 4 5 ces 6,800 -4,200 Calculate the MIRR of the project using all three methods with these interest rates. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach Reinvestment approach Combination approach % % %
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Green Submarine has a project with the following cash flows: Year Cash Flows −$17,400 1 6,630 2 11,300 3 7,590 4 −2,600 The discounting rate is 10 percent and the reinvestment rate is 12 percent. What is the MIRR for this project using the combination approach? Multiple Choice 12.88% 16.52% 13.65% 14.51% 15.38%
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Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 29,800 012345 12,000 14,700 16,600 13,700 -10,200 The company uses a discount rate of 13 percent and a reinvestment rate of 6 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (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. (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. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Discounting approach MIRR b. Reinvestment approach MIRR c. Combination approach MIRR % % %
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