Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 15,800 0 1 2 3 6,900 8,100 4 5 7,700 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.
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 15,800 0 1 2 3 6,900 8,100 4 5 7,700 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.
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
Problem 1PS
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Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows:
Cash Flow
Year
0
-$ 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.
Discounting approach
Reinvestment approach
Combination approach
%
%
%
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