Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 -$47,000 1 $16,900 2 $20,300 3 $25,800 4 $19,600 5 -$9,500 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.

Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 -$47,000 1 $16,900 2 $20,300 3 $25,800 4 $19,600 5 -$9,500 The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 19EA: Redbird Company is considering a project with an initial investment of $265,000 in new equipment...

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Question

MIRR [LO6”] Solo Corp. is evaluating a project with the following cash flows:

Year	Cash Flow
0	-$47,000
1	$16,900
2	$20,300
3	$25,800
4	$19,600
5	-$9,500

The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.

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