What is the Modified Internal Rate of Return of Mazgaon using the reivestment approach if the nterest rate is 7 percent? Year Cash Flows 0 −$27,400 1 10,750 2 21,900 3 9,960 4 −3,800
What is the Modified Internal Rate of Return of Mazgaon using the reivestment approach if the nterest rate is 7 percent? Year Cash Flows 0 −$27,400 1 10,750 2 21,900 3 9,960 4 −3,800
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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Question
What is the Modified
Year | Cash Flows | |
0 | −$27,400 | |
1 | 10,750 | |
2 | 21,900 | |
3 | 9,960 | |
4 | −3,800 |
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The Modified internal rate of return can be calculated as follows :
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