Adequate information: Year Cash Flow 0 -$47,000 1 $16,900 2 $20,300 3 $ 25,800 4 $ 19,600 5 -$9,500 Discount rate = 10% To compute: The MIRR of the project under the discounting approach, reinvestment approach, and combined approach. Introduction: MIRR is used to determine the attractiveness of an investment. MIRR allows for the adjustment of reinvestment rates pertaining to different stages of the project.

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Chapter 5, Problem 20QAP

Summary Introduction

Adequate information:

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

Discount rate = 10%

To compute: The MIRR of the project under the discounting approach, reinvestment approach, and combined approach.

Introduction: MIRR is used to determine the attractiveness of an investment. MIRR allows for the adjustment of reinvestment rates pertaining to different stages of the project.

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