Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Year Cash Flow 5 0 512345 -$16,000 7,100 8,300 7,900 6,700 4,100 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Discounting approach MIRR 20.12% Reinvestment approach Combination approach\ 1.80% 20.12 %

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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Mittuch Corp. is evaluating a project with the following cash flows. The company uses a
discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects.
Year
Cash Flow
5
0
512345
-$16,000
7,100
8,300
7,900
6,700
4,100
Calculate the MIRR of the project using all three methods with these interest rates. (Do
not round intermediate calculations and enter your answers as a percent rounded to
2 decimal places, e.g., 32.16.)
Answer is complete but not entirely correct.
Discounting approach
MIRR
20.12%
Reinvestment approach
Combination approach\
1.80%
20.12
%
Transcribed Image Text:Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Year Cash Flow 5 0 512345 -$16,000 7,100 8,300 7,900 6,700 4,100 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Discounting approach MIRR 20.12% Reinvestment approach Combination approach\ 1.80% 20.12 %
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