You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 50.55% 19.72% 71.94% 37.52%

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EB: Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two,...
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Please double check your work !! the answer is not 50.55 or 37.52 %
You are considering an investment project with the cash flows of -300 (the initial cash
flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of
10%, compute the Modified Internal Rate of Return (MIRR) using the
discountingapproach.
50.55%
19.72%
71.94%
37.52%
Transcribed Image Text:Please double check your work !! the answer is not 50.55 or 37.52 % You are considering an investment project with the cash flows of -300 (the initial cash flow), 800 (cash flow at year 1), -200 (cash flow at year 2). Given the discount rate of 10%, compute the Modified Internal Rate of Return (MIRR) using the discountingapproach. 50.55% 19.72% 71.94% 37.52%
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