Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow e -$ 16,000 1 7,100 2 8,300 3 7,900 4 5 6,700 -4,100 The company uses an interest rate of 10 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 23.00% 23.00% 13.16%

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
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Duo Corporation is evaluating a project with the following cash flows:
Cash Flow
Year
e
-$ 16,000
1
7,100
2
8,300
3
7,900
4
5
6,700
-4,100
The company uses an interest rate of 10 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
23.00%
23.00%
Reinvestment approach
Combination approach
13.16 %
Transcribed Image Text:Duo Corporation is evaluating a project with the following cash flows: Cash Flow Year e -$ 16,000 1 7,100 2 8,300 3 7,900 4 5 6,700 -4,100 The company uses an interest rate of 10 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 23.00% 23.00% Reinvestment approach Combination approach 13.16 %
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