Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 −$ 29,800 1 12,000 2 14,700 3 16,600 4 13,700 5 −10,200 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using the reinvestment approach Calculate the MIRR of the project using the combination approach.
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 −$ 29,800 1 12,000 2 14,700 3 16,600 4 13,700 5 −10,200 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using the reinvestment approach Calculate the MIRR of the project using the combination approach.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 21P
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Question
Duo Corporation is evaluating a project with the following cash flows: |
Year |
Cash Flow |
|
0 |
−$ 29,800 |
|
1 |
12,000 |
|
2 |
14,700 |
|
3 |
16,600 |
|
4 |
13,700 |
|
5 |
−10,200 |
The company uses an interest rate of 9 percent on all of its projects. |
|
|
Calculate the MIRR of the project using the reinvestment approach |
|
|
Calculate the MIRR of the project using the combination approach. |
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