For the following cash flow, if the reinvestment rate is equal to MARR, which is 16%, and the financingrate is 10%,Investment234-20002003000-15008001000What is the IRR?What is the MIRR?What is the RIC?8.9.10.

For the following cash flow, if the reinvestment rate is equal to MARR, which is 16%, and the financing rate is 10%, Investment 1 3 4 -2000 200 3000 -1500 800 1000 What is the IRR? What is the MIRR? 8. 9.

For the following cash flow, if the reinvestment rate is equal to MARR, which is 16%, and the financing rate is 10%, Investment 1 3 4 -2000 200 3000 -1500 800 1000 What is the IRR? What is the MIRR? 8. 9.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 8P

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Question

For the following cash flow, if the reinvestment rate is equal to MARR, which is 16%, and the financing
rate is 10%,
Investment
2
3
4
-2000
200
3000
-1500
800
1000
What is the IRR?
What is the MIRR?
What is the RIC?
8.
9.
10.

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9. Calculate the Multiple IRR (MIRR) as follows:

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