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Problem 9-19 MIRR [LO6] Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 29,100 12345 11,300 14,000 15,900 13,000 -9,500 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Discounting approach MIRR 11.19 % b. Reinvestment approach MIRR 11.19 % c. Combination approach MIRR 13.02 %

Problem 9-19 MIRR [LO6] Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 29,100 12345 11,300 14,000 15,900 13,000 -9,500 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Discounting approach MIRR 11.19 % b. Reinvestment approach MIRR 11.19 % c. Combination approach MIRR 13.02 %

Essentials Of Investments
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
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Problem 9-19 MIRR [LO6] Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 29,100 12345 11,300 14,000 15,900 13,000 -9,500 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Discounting approach MIRR 11.19 % b. Reinvestment approach MIRR 11.19 % c. Combination approach MIRR 13.02 %
Transcribed Image Text:Problem 9-19 MIRR [LO6] Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 -$ 29,100 12345 11,300 14,000 15,900 13,000 -9,500 The company uses an interest rate of 8 percent on all of its projects. a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. a. Discounting approach MIRR 11.19 % b. Reinvestment approach MIRR 11.19 % c. Combination approach MIRR 13.02 %
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