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Asked Dec 5, 2019
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Problem 13-11 MIRR (LG13-4)

Compute the MIRR statistic for Project I if the appropriate cost of capital is 11 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

 

Project I          
Time: 0 1 2 3 4
Cash flow: −$11,100 $5,380 $4,230 $1,570 $2,050
 

 

 

 

 

 

Should the project be accepted or rejected?

 

 

  • accepted
  • rejected

 

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Expert Answer

Step 1

Hence, Total amount of Future value of the cash inflows of year 1, year 2, year 3 and year 4 is ...

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A в Calculation of Future Value FVIF Future values 1.37 1.23 Years Cash flows 2 $5,380 $4,230 $1,570 $2,050 $7,371 $5,203 3 1.11 $1,743 $2,050 $16,366 Total

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