Mittuch Corp. is evaluating a project with the following cash flows. The company uses adiscount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects.Year10-2345Cash Flow-$16,000-7,1008,3007,9006,7004,100Calculate the MIRR of the project using all three methods with these interest rates. (Donot round intermediate calculations and enter your answers as a percent rounded to2 decimal places, e.g., 32.16.)Answer is complete but not entirely correct.MIRRDiscounting approach20.51%Reinvestment approach20.51%Combination approach\22.09 %

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Answered: Mittuch Corp. 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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Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 12 percent and a reinvestment rate of 9 percent on all of its projects. Year 0 Cash Flow -$ 16,600 12345 7,700 8,900 8,500 5 7,300 -4,700 Calculate 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 approach Reinvestment approach Combination approach % % %
Mittuch Corp. is evaluating a project with the following cash flows. The company uses a discount rate of 10 percent and a reinvestment rate of 7 percent on all of its projects. Year 012345 Cash Flow -$15,900 7,000 8,200 7,800 6,600 - 4,000 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.) MIRR Discounting approach 24.72% Reinvestment approach 15.65% Combination approach 14.84 %
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 -$16,000 7,100 8,300 7,900 6,700 4,100 Calculate the MIRR of the project using all three methods with these interest rates. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Discounting approach MIRR 20.12% Reinvestment approach Combination approach\ 1.80% 20.12 %
Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Year 012345 Cash Flow -$ 53,000 16,700 21,900 27,300 20,400 -8,600 Calculate 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. X Answer is complete but not entirely correct. Discounting approach Reinvestment approach Combination approach 16.89 % 13.65 × % 13.33 X %
Duo Corporation is evaluating a project with the following cash flows. The company uses a discount rate of 9 percent and a reinvestment rate of 6 percent on all of its projects. Year 0 12345 4 5 Cash Flow -$ 15,200 6,300 7,500 7,100 5,900 -3,300 Calculate 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 approach Reinvestment approach Combination approach de de % % 12.40%
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Doak Corp. is evaluating a project with the following cash flows: Year 012345 Cash Flow -$16,200 7,300 8,500 8,100 6,900 - 4,300 The company uses an interest rate of 12 percent on all of its projects. Calculate the MIRR of the project using all three methods. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Discounting approach Reinvestment approach Combination approach % % %
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Solo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0-$ 13,800 1 6,200 26,900 3 6,600 45,500 5-6,000 The company uses a disount rate of 11 percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods using these interest rates. a. MIRR using the discounting approach. b. MIRR using the reinvestment approach. c. MIRR using the combination approach.
Radhubhai
Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 −$ 16,800 1 7,900 2 9,100 3 8,700 4 7,500 5 −4,900 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.

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