NUBD Co. is considering a five-year investment that costs P100,000. The investment will produce cash flows of P25,000 each year for the first two years (t = 1 and t = 2), P50,000 a year for each of the remaining three years (t = 3, t = 4, and t = 5). The company has a weighted average cost of capital of 12 percent. What is the MIRR of the investment? Use 5 decimal places for the PV factor. * Round-off the final answer to 2 decimal places. Sample format: 11.11%
NUBD Co. is considering a five-year investment that costs P100,000. The investment will produce cash flows of P25,000 each year for the first two years (t = 1 and t = 2), P50,000 a year for each of the remaining three years (t = 3, t = 4, and t = 5). The company has a weighted average cost of capital of 12 percent. What is the MIRR of the investment? Use 5 decimal places for the PV factor. * Round-off the final answer to 2 decimal places. Sample format: 11.11%
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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Transcribed Image Text:NUBD Co. is considering a five-year investment that costs P100,000. The investment will
produce cash flows of P25,000 each year for the first two years (t = 1 and t = 2), P50,000 a year
for each of the remaining three years (t = 3, t = 4, and t = 5). The company has a weighted
average cost of capital of 12 percent. What is the MIRR of the investment? Use 5 decimal
places for the PV factor. *
Round-off the final answer to 2 decimal places. Sample format: 11.11%
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