Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and areinvestment rate of 9 percent on all of its projects.Year0Cash Flow-$ 16,10012123457,2008,40038,00045ces6,800-4,200Calculate 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 approachReinvestment approachCombination approach%%%

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Answered: Duo Corporation is evaluating a project…

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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Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for both projects is 12 percent. Year AZM Mini-SUV AZF Full-SUV -$ 550,000 340,000 220,000 170,000 0123 a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) AZM Mini-SUV AZF Full-SUV -$ 900,000 370,000 460,000 310,000 AZM Mini-SUV AZF Full-SUV years years b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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