Solo Corporation is evaluating a project with the following cash flows: Year 0,1, 2, 3, 4, 5 Cash Flow $ -29,600; 
11,800; 
14,500
; 16,400; 
13,500 and -10,000.                                                                                                         The company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods.                                       a. MIRR using the discounting approach.                                                             b. MIRR using the reinvestment approach.                                                           c. MIRR using the combination approach.

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Cash Flow in Engineering Economics (Interest and Equivalence)

The cash flows of a firm are of two categories such as cash inflows and cash outflows. Cash inflow is the money or income entering a firm during a specific period whereas cash outflow is the money exiting a firm during a specific period in the form of the expenses incurred by the firm. In other words, we can say that cash flow is a series of expenses and credits that run over the project over the lifetime it existed whereas cash inflows are all the income and gains the company earns as a result of its operations.