Investment B: 0 -$1 million 1 $550,000 2 $400,000 3 $325,000 The timeline of an investment is shown above. If the cost of capital is 8%, a) What is the Net Present Value (NPV) of this investment? b) Calculate the Modified Internal Rate of Return (MIRR) of this investment

Investment B: 0 -$1 million 1 $550,000 2 $400,000 3 $325,000 The timeline of an investment is shown above. If the cost of capital is 8%, a) What is the Net Present Value (NPV) of this investment? b) Calculate the Modified Internal Rate of Return (MIRR) of this investment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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