Problem 9-19 MIRR [LO6] Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow -$ 29,100 012345 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 -$ 29,100 012345 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
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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![Problem 9-19 MIRR [LO6]
Duo Corporation is evaluating a project with the following cash flows:
Year
Cash Flow
-$ 29,100
012345
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
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d1ca6e3-3f98-4956-8bda-63eea155c5b4%2Fef885c4a-2c5a-4ea8-b866-5e1f534b46c8%2Fd6b81y9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 9-19 MIRR [LO6]
Duo Corporation is evaluating a project with the following cash flows:
Year
Cash Flow
-$ 29,100
012345
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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