Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 29,700 1 11,900 2 14,600 3 16,500 4 13,600 5 – 10,100 The company uses an interest rate of 8 percent on all of its projects. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Solo Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 29,700 1 11,900 2 14,600 3 16,500 4 13,600 5 – 10,100 The company uses an interest rate of 8 percent on all of its projects. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
Problem 9P
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Question
| Solo Corp. is evaluating a project with the following cash flows: |
| Year | Cash Flow | ||
| 0 | –$ | 29,700 | |
| 1 | 11,900 | ||
| 2 | 14,600 | ||
| 3 | 16,500 | ||
| 4 | 13,600 | ||
| 5 | – | 10,100 | |
| The company uses an interest rate of 8 percent on all of its projects. |
| Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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